MONEY CHALLENGES AND SOLUTIONS
1. Common money issues/challenges (USA Today September 20, 2014 ) A recent survey by Money-Rates asked people about their financial worries, regrets, and fears.
- Problems making ends meet, let alone feeling comfortable
- Living for today
- Accumulating too much debt
- Making poor purchasing and investing decisions
- Being unable to enjoy money
Regularly meeting essential expenses was the most common financial concern among the survey participants. More than one-third (35%) of the Money-Rates survey respondents said that paying regular financial obligations — bills, a mortgage or rent payment, credit card payments, etc. — was their biggest financial worry
According to a Federal Reserve survey release from earlier this year, “Thirty-one percent of non-retired respondents reported having no retirement savings or pension, including 19% of those ages 55 to 64.”
If $10,000 fell out of the sky and into your lap, how would you use it? Around four in 10 (41%) of those who participated in the Money-Rates survey would pay down debt with that money. High amounts of debt is a large concern for many Americans.
A large portion of the survey respondents (46% of men and 26% of women) acknowledge the impact of their financial decisions and say they’d like to work towards making wiser investment or purchasing decisions
Nearly 12% of respondents from last year’s survey said their biggest financial regret was being too cheap and not allowing themselves to enjoy their money
2. Common misunderstandings about money-saving, investing and planning
- Procrastination, Time and Rate of Return are your friends, START EARLY
- Putting your money in a savings account because it’s safe
- Not knowing about tax advantages strategies for planning
- Having a 401k as your only savings plan for retirement plan
- You think you have to do without a lot of the things you love to save, pay yourself first
- Lack of understanding about financial concepts.( types of insurance, Roth vs Traditional IRA, Annuity)
- Not having Estate Planning in place( Will, Living will, power of attorney).
- Not knowing where your valuable papers are and also not having at least 1 person you trust to know where those valuable papers are kept.
Simple, practical financial tips you can implement immediately.
- Know how much money you make. Do you look at your check stub? How much comes out, insurance, taxes. Compare it to the last one.
- Control you spending, know where your money is going. It’s not how much you make, it’s how much you keep
- Determine how much protection you need (Just in case you die to soon) D I M E
- Determine how much money you need for retirement ( just in case you live to long) 20x annual income.
- Check the beneficiaries on your policies and accounts
- Know where all of your valuable papers are and have at least 1 person that you trust to know where they are also.
- Prince died without a will. Get your estate planning documents in place now. ( Legal Shield Plan, They are included at no additional charge for husband and spouse/significant other.)
- Obtain a current credit score, www.annualcreditreport.com
- If you are in debt, create a plan to get out. Consider Debt Roll up strategy.
- Have a family meeting so that everyone is onboard with the plan.
- Perform Plastic Surgery
- Buy what you need, not what you want.
- Understand the rule of 72, how it can work for you or against you
- Attend Financial Education Classes to become your own money manager ( We have classes at our Financial Center.)
THE BIGGEST TIP I HAVE IS STOP PROCRASTINATING. CALL ME, LET ME DO A COMPLEMENTARY INSURANCE POLICY REVIEW AND I’ll sit down with you listen to your concerns, your hopes and dreams and help you map out a strategy to reach them. I Can HELP YOU CREATE YOUR SUCCESS PLAN
Most people don’t plan to fail, they fail to plan and they also fail to apply the knowledge once they learn it .
Example: You want to lose weight, a personal trainer works out a plan for you. What happens if you don’t take any action? If you fail to take action, it’s just words on a piece of paper. You won’t lose weight!
The same goes for your financial situation.
Independent Insurance Agent