Finacial Planning, Financial Independence
February 22, 2018
I am continually frustrated when I read surveys that show how anxious many Americans are about their financial situation.
Recently, one survey reported one-third of respondents aren’t clear how inflation works (let alone its huge impact on retirement security) and nearly four in 10 report they won’t be able to save enough for a comfortable retirement. In another survey, less than three in ten people expect to pay down credit card debt this year. Another survey reports that only 40 percent of people have an emergency savings fund that could cover a $1,000 unexpected expense. In the same survey, 20 percent of people said they would need to put the expense on a credit card that they would then pay off over time. That makes the emergency expense even more costly, as the average interest rate on unpaid credit card balance is around 15 percent.
I am not here to scold you. And I appreciate that your life is busy. I understand that sometimes, oftentimes, personal finance topics seem too hard or confusing to understand.
It doesn’t have to be such a tough challenge. You have everything you need to become strong and confident with your money. You just need to tap into that strength and ability.
That’s why I developed a Free Video Series that will give you the confidence and information to start taking control of your financial life.
What are you waiting for? The time is now!
Answer Yes or No to the follow statements.
I pay all my credit card bills in full each month.
I have an eight-month emergency savings fund separate from my checking or other bank accounts.
The car I am driving was paid for with cash, or a loan that was no more than three years, and I sure didn’t lease!
I am contributing at least 10% of my gross salary to a retirement plan at work, or I am saving at least that much in an IRA and/or regular taxable account.
I have a long-term asset allocation plan for my retirement investments, and once a year I check to see if I need to do any rebalancing to stay on target with my allocation goals.
I have term life insurance to provide protection to those who are dependent on my income.
I have a will, a trust, an advance directive (living will), and have appointed someone to be my health care proxy.
I have checked all the beneficiaries of every investment account and insurance policy within the past year.
So how did you do?
If you answered yes to every item, congratulations. If you are working on improving on a few items, I say congratulations as well.
As long as you are comitted to truly creating financial security, I applaud you. If that means you are paying down your credit card balances, or are building up your emergency fun with automated payments, that’s more than fine. You are on your way!
But if you found yourself saying No to any of those questions, and you’re not working on moving to Yes, then I want you to stand in your truth. No matter how good you feel, you have some work to do before you can honestly know what you are on solid financial ground.
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Credit & Debt, Saving, Investing, Retirement