The road to financial freedom can be short and sweet for those who follow a road map or a long and daunting path for those who fail to make a plan. Let Steve Yokum, our CFS* Financial Advisor, help you take the first steps toward building a confident financial future, by creating a road map to your financial freedom, and designing a P.L.A.N.
Pay yourself first
• Promise yourself to take advantage of your employer's retirement plan, whether it's a 401(k), a 403(b), or any other kind of contributory plan.
• Consider †Dollar Cost Averaging, instead of investing assets in a lump sum, this may help to spreads the cost basis out over several years, possibly providing insulation against changes in market price.
Live within your means
• Promise to pay off your credit cards. Credit card debt is the number one reason most people can't get ahead. Paying the minimum balance due on a $10,000 credit card balance with an 11% interest rate could take 20 years to pay off.
• It's often more rewarding to save for something vs. putting it on a card and getting stuck with payments. If you can't afford it, think twice about buying it.
• Financial fitness is a commitment, a lifestyle, similar to going to the gym and eating right.
Assure your family’s stability
• Write or update your will. Wills are not just for the rich. Regardless of how much or how little money you have, a will may ensure that whatever personal belongings and assets you have will go to beneficiaries you designate.
• If you have children, a will allows you to appoint a guardian for them in the event of your death.
• Life events such as buying a home or having a child could change the amount of coverage a family needs, work with financial professional to assess the amount of coverage you and your family may need.
Never stop learning
• Write down your financial goals, this is your road map to financial freedom.
• Work with a financial advisor can keep your up to date with new investment opportunities available to you and your family.
• Regular reviews can help keep your investment choices on pace with your needs based on risk tolerance and time horizon.