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Financial PlanningBlog posted On December 29, 2021
Regardless of where you are in life, it’s likely that you have money on your mind. Whether you’re just getting your first paycheck, or getting ready to retire, you’re probably wondering about the best places to spend, save, or invest your money. Though the best financial advice is tailored to your individual situation, a few suggestions can help you at almost any stage in life.
Anything that you can put aside for retirement savings will help you in the future. Even if you can’t put aside the recommended 15%, any contribution is better than no contribution. If you have a 401(k) available to you, take full advantage of the program. Try to avoid dipping into your retirement savings to finance other expenses.
You never know when you might need a little extra cash for a rainy day. Many financial experts recommend having at least three to six months of expenses in a savings account. However, that can take some people years to build. Try starting at $500 and building from there. You can also set up other cash reserves through a Roth IRA, or by getting a home equity line of credit (HELOC).
If you have kids or are thinking about having kids, consider opening a 529 college savings plan and contributing $15 to $25 a month. Even if you don’t plan to have kids, maybe you start saving for yourself in case you want to attend school again someday.
It can be tempting to borrow as much as you’re allowed, but credit card interest rates are typically very high and can be difficult to pay off. Plus, this could lead to a higher credit utilization ratio, which can impact your application for other loans like a mortgage.
When you feel like everyone else is buying a house, you may feel inclined to buy too. But the most important thing is that you’re financially prepared. Once you decide that it is the right time to buy, talk to us about different financing options. We offer several down payment assistance programs and 0% down payment loans.
Insurance is a good way to protect yourself in the event of unpredictable expenses. Whether it’s medical expenses, or weather-related damages to your house, insurance can help cover some or all of the costs. When browsing through different insurance plans, beware of high deductible insurance policies.
Different aspects of your finances are all interconnected. Several strategies for money management can help increase your chances of getting approved for a mortgage and snagging a competitive rate.
Sources: MarketWatch
