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
  • 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

  • Living for today
  • 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.”

  • Accumulating too much debt
  • 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.

  • Making poor purchasing and investing decisions
  • 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

  • Being unable to enjoy money
  • 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.

    Ruby Shoals
    Independent Insurance Agent
    rshoals@gmail.com
    903-244-1537

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