Saving and investing is challenging, especially with other priorities competing for your paycheck. However, careful financial management protects you from economic uncertainty and gives you the resources to achieve your dreams, making it an essential financial priority. Understanding the importance of saving and investing will help you build wealth and ensure a more stable future.

The Significance of Saving & Investing

Weathering Financial Emergencies

If your car were to break down or a family member suffers a medical emergency, could you cover the cost? What would happen if you lose your job? Without substantial savings, you may have to go into debt to pay for emergencies or lose assets after a job loss. To keep unpredictable situations from derailing your life, many financial management professionals recommend saving up enough to cover three months of living expenses.

Building Wealth

Building up wealth isn’t a matter of how much you make, but how well you plan and use the money you have. Over time, relatively small contributions to an investment account can amount to hundreds of thousands of dollars. Whether you’re hoping to buy a house or saving for retirement, financial discipline is key to making those dreams a reality.

How to Start Investing

Before concerning yourself with mutual funds, IRAs, and other options, start building up a savings account to protect the rest of your investments. You can also maximize your 401(k) contributions, especially if your employer matches funds. A financial management professional will help clarify your priorities and choose an investment portfolio to fit your lifestyle and risk tolerance.

Regardless of your goals or financial situation, the experts at McKinney Group Wealth Management will help set you on the path to success. They pride themselves on creating customized investment strategies for each client and taking the time to ensure you understand how each aspect of your portfolio works. To speak with a financial management professional, and start building your future, call their offices in Bridgeton, MO, at (314) 736-1490 today. Follow them on Facebook for more financial management tips.