Generations
of Americans have sought financial independence through both economic highs and
lows. Take time to celebrate the
freedoms our democracy offers and also reflect on what you can do to help
ensure long-term financial stability for yourself and your family. Consider the
following ideas and actions:
·
Be true to yourself. While a competitive
personality may help you get ahead in some areas of your life, no one wins when
you try to keep up with “the Jones’.” It’s important to understand your own
financial circumstances and resist the urge to match the lifestyle of those
around you. Expensive lifestyles that indicate financial success may simply be
a façade for big spenders. Instead of following their lead, consider your
budget, long-term goals and personal values when making important financial
decisions. Pursue your own happiness within your means and the real prize – a
secure financial future – will likely follow.
·
Pay yourself first. This probably isn’t
the first time you’ve heard the advice to “pay yourself first.” This guidance
is relevant through all economic circumstances and life stages. Explore and
take advantage of every opportunity you have to fund your savings with minimal
effort. Automatically invest a portion of every paycheck into your retirement
account and be sure to maximize any employer match that’s available to you.
It’s also easy to set up an automatic transfer from your checking account to
your savings account, or to have a specified amount regularly direct-deposited
from your paycheck. A system like this makes saving a priority while also
allowing you to meet your monthly expenses.
·
Be realistic and be
prepared. Optimism
is a classic American trait, but don’t let this otherwise positive
characteristic cloud your judgment. Have you considered what may happen if you
faced a sudden job loss, long-term illness, natural disaster or other
unexpected event? Review your insurance coverage (including life, health,
disability, property, auto and long-term care policies) and ensure you and your
family are properly protected. It’s also a good idea to have enough liquid
assets available to cover six months worth of expenses. Though it’s not fun to
temporarily squelch your optimism, most people feel more confident about the
future once they know they’re financially prepared for a variety of scenarios.
·
Control your debt. Payments on consumer
debt, student loans, and excessive car or mortgage payments can cripple your ability
to save and make you feel like you’ll be financially dependent for eternity.
Though the best approach is to minimize how much you borrow, take control by
establishing a plan that will systematically reduce the outstanding balance on
any existing loans. Another bonus to staying on top of debt repayment is an
improved credit rating, which may allow you to access loans when opportunities
that could benefit your financial position arise, like a small business venture
or low interest equity line of credit.
·
Put your plan in
writing. When
our Founding Fathers declared their aspirations for our nation, they took a
very important step – they wrote them down. Use this as inspiration to create a
written plan that outlines your personal dreams and goals, as well as the
actions you’ll need to take to achieve them. If the financial part seems
overwhelming, consider consulting a financial advisor. He or she can provide
guidance on saving for retirement, funding your child’s education or working
toward any other financial goal that’s important to you.
As
Americans, we share certain unalienable rights – life, liberty and the pursuit
of happiness. While the last of those means something different to everyone,
planning ahead and establishing financial independence can play an important
role in helping your goals and dreams become a reality.
###
Renée A. Hanson, CFP®, CEP®, CDFA™, CFS, is a private
wealth advisor with Hanson, Ayala & Associates, a private wealth advisory
practice of Ameriprise Financial Services, Inc. Her passion is in helping women
achieve their dreams and financial goals, regardless of life’s many obstacles.
Renée is licensed/registered to do business with U.S. residents only in the
states of AZ, CA, CO, GA, IA, IL, MI, MN, MT, NH, NJ, NM, NY, OH, PA, SC, TX,
VA, WA, WI. Please visit: www.reneehanson.com to learn more.
Brokerage, investment and financial advisory services are
made available through Ameriprise Financial Services, Inc. Member FINRA and
SIPC. Some products and services may not be available in all jurisdictions or
to all clients.
©
2013 Ameriprise Financial, Inc. All rights reserved. File
# 682562
No comments:
Post a Comment