Budgeting
You need to understand your spending habits; what you’re spending your money on and how much you’re spending. The goal is to spend less than you earn so you are able to set aside money to reach your financial goals. This may not always be easy. Build awareness around your overall financial status and develop a spending plan that is realistic, helps you make progress towards reaching your financial goals.
Emergencies
Planning for emergencies is a key component of financial wellness. It is recommended to have 3-5 months of income saved for financial emergencies; without sufficient savings it may be very difficult to achieve financial stability if an unforeseen event occurs.
Asset Management
To build wealth through an investment strategy, learn to save early, adopt a long-term investment plan, and diversify your portfolio. It is important to connect with an independent and trustworthy financial planner to guide you toward the right strategy to achieve your financial goals.
Will/Trust/Estate Planning
To plan for the future and ensure your beneficiaries are properly cared for, you should consider having a will and/or trust in place. With this, you can appoint a guardian for your child(ren) if they are minors at the time of your death, you can appoint those you wish to manage your estate, and distribute your property after your death. Naming a beneficiary or beneficiaries is so important. If you do not name one, your assets could go to beneficiaries you did not intend.
Retirement Planning
The key is to save early and save consistently. Although it is never too late to start saving and to enjoy the power of compounding interest. Take advantage of investment planning resources; such as, risk tolerance questionnaires, retirement income calculators, and consultation with a financial planner.
Protection of personal and financial data
In today’s high technology world, all your personal information including banking data, credit card transactions, and social security numbers can easily be accessed without your knowledge. It is important to take adequate security measures to protect your personal information. Keep your passwords secure and consider enrolling in an identity theft protection plan.
