Five tips for “getting your house in order”
When you read about money matters, you may see the phrase “getting your financial house in order.” What exactly does that mean?
When your “financial house” is in order, it is built on a solid foundation. You have the “pillars” in place that are designed to support your long-term financial well-being.
1. A banking relationship.
Having a relationship with a bank can play a role in many financial strategies. You have different choices when deciding which bank is right for you. Some banks are larger and nationally based, while others are smaller and community-based. Banks may have unique advantages and disadvantages, so it’s important to look around and see what each one can offer you.
2. An emergency fund.
You know that label you see on fire extinguisher boxes – “Break glass in case of emergency?” Only in a financial emergency should you “break into” your emergency account. What is a financial emergency? Everyone’s definition varies, but it can range from a broken water heater to major car repairs to unemployment.
3. A workplace retirement strategy.
Your employer-sponsored retirement plan is a powerful benefit. Sign up and contribute as much as you are able. As you grow in your career, aim to save 15% of your gross income for retirement. The key is to start saving as much as you can afford… and early. Starting small is far better than not starting at all. Over time, compound interest can meaningfully grow your retirement savings.
4. An eye on insurance.
Like the other decisions you’ll need to make while building your financial foundation, choosing the appropriate insurance program is going to be influenced by your own individual life circumstances. For example, if you’re supporting a family, you may want to look into an insurance program designed to protect you in the event that something happens to you or prevents you from working for a period of time.
5. An estate strategy.
It’s never too early to start thinking about your legacy. For some, this can mean providing some financial support to your loved ones. For others, it might mean creating a program that supports charities and organizations. Whatever your aspirations, it’s important to ensure that your assets transition smoothly in accordance with your wishes.
Contact your trusted financial advisor to discuss your financial plan, including banking, emergency fund, retirement savings, insurance, and estate planning considerations.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.