Finances get tight, especially now as prices seem to continue to go up.
Increased costs out of pocket mean less money to invest in saving for your goals.
So, how do you handle saving for long-term goals, let alone short-term goals, plus maintaining retirement savings without going broke?
Follow these simple steps:
- Start with a budget. Make sure you are covering the cost of living, i.e. mortgage/rent, food, utilities, and any other essentials such as transportation.
- Next, you have to make sure you set money aside for emergency funds, rainy day funds, and of course, retirement.
- Once you have those bases covered, you need to prioritize your goals: First by long-term, midterm, and short-term. Then by importance. Saving for college may outweigh that cross-country European adventure.
- With priorities set and savings goals determined, you need to figure out how to divide up the money you have left over. The key here is to make sure the things that are necessities are funded consistently, without exception. Decide what amount of money you can afford each paycheck and have it automatically put into a high-yield savings account.
Speaking with a financial professional can help you work through the math of longer-term, higher-ticket items. They can help you budget and map out a plan that works for you and your family.
If you need help, please reach out, we love being able to assist people with reaching their financial dreams.