Steps to Take to Plan Your Financial Future

No matter your current stage of life, it is crucial to plan for your financial future. Taking appropriate steps will set you up for financial freedom and security over the long term.

For many, this task seems daunting, because they don’t know how to budget finances for the future. However, it’s simpler than you might think. To get started, use the following step-by-step guide on how to plan your financial future.

1. Set your goals

What financial goals do you want to work toward? Perhaps you want to pay off debt, or own a home free and clear, or start saving for retirement. Think through your goals and write them down.

2. Establish your budget

Give every dollar a purpose. Use a budget worksheet to write down your monthly income and expenses. Decide where to designate each dollar to cover your necessities, and then choose your wants wisely.

3. Don’t forget taxes

As you create a budget, be sure to allow for tax expenses. You may want to think through any tax credits or deductions you are eligible for as well. For assistance with this process, consider contacting a financial services professional.

4. Start your emergency fund

Life throws us curveballs. Even if you plan your budget carefully and avoid overspending, surprise expenses are inevitable. Start building an emergency fund that will cover circumstances such as emergency car repairs, broken water heaters and medical treatment.

A good rule of thumb is to start by building up a $1,000 emergency fund. Eventually, it will be good to have a fund that covers three to six months’ worth of expenses, in case you are ever out of work due to job loss or medical issues.

5. Get out of debt

Throw as much money as you can at your debt. Paying this off quickly will give you more free funds in the future to meet your needs and wants. As you work on your budget, consider how you can increase payments to move the needle on your debt-line faster.

6. Plan for retirement

Thinking about retirement can be challenging, especially if it is many decades in the future. However, it’s essential to make a plan now to have funds for retirement. This is a key strategy in how to plan for your financial future. A financial services representative can review the many options available to help you understand how to budget finances for the future.

7. Invest

As you plan for the future, investing your money will help you plan for short- and long-term goals. Saving typically isn’t enough. You need to put your money to work for you. Again, a financial professional can assist you with investment options.

8. Review

At least once each year, review your financial plan and make any necessary adjustments to meet your current goals. You should also review your plan if you encounter any major life changes, such as a new job, significant change in income, family dynamic change (having a baby, going through a divorce), receiving an inheritance or buying or selling a home.

Let’s get started

When you are ready to start planning your financial future, contact Safe Path Financial. We specialize in retirement planning, investments, annuities, insurance and more. Our experts know how to plan for your financial future and will help you make wise decisions today so you can reap the financial benefits tomorrow.