When you’re young, planning for the future may not be the first thing on your mind. After all, you have student loans to repay, bills to cover, and monthly rent checks to write. While these expenses are always going to be present, saving for the future needs to become a priority. In addition to maintaining a savings account, you’ll need to think about starting the financial planning process. Here’s how to put together a solid strategy in your 20s and 30s that will set you up for success in the future.
Establish Your Goals & Your Budget
Before you can start planning for financial stability in the future, you’ll need to examine what your current goals are and how your income will help meet those goals. Grab a pen and paper and jot down the ten most important finance-related things you want to accomplish. For example, if you have outstanding credit card debt, a goal could be to pay it off. If you have money in a savings account already, you may want to increase those savings by a certain percentage.
Remember, the goals don’t have to be grandiose, but they should be achievable. Once they are written down, consider how much money you bring in each month and what you can do to better allocate your income to achieve those goals. Working with a personal banking specialist can help you create a realistic budget and plan for the future.
Once you have a certain amount of money built up in your savings account, you’ll want to invest some of your money to grow your wealth. Rather than throwing all of your funds into a single stock or company, diversify those investments. Work with a dedicated financial advisor to help you identify worthwhile investments. Contribute regularly to retirement plans as the sooner you start, the more money you’ll have when the time comes for you to leave the workforce.
Financial planning can be done at any age and any level of financial wellness. If you’re looking for help getting started, contact the team at Spirit of America Federal Credit Union in Lincoln, NE. Their dedicated staff will help you start off on the right foot with the best savings account for your needs. Learn more about their services online and call (402) 467-1102 to schedule a consultation today.