Five Tips for a Better Financial Future
What is the sign of a good decision?SM
It’s assessing and then addressing what is most important to your family and its financial future.
If you are like many Americans, the recent economic downturn has thrown your family budget for a loop. You may have readjusted your spending habits to a significant extent – and you’re starting to realize that these new habits are here to stay. Even if you have been fortunate enough to remain employed, you may have been affected by the fallout from declining retirement plan balances. It could be time to take a step back and take a long, hard look at their finances—and where they want to be financially in the future.
Tips to help improve your economic future
Here are some tips to help you take stock of your overall economic picture, with actionable steps designed to help improve your long-term financial security.
Tip #1: Determine what is really important.
Take stock of what is really important to you and your family—is the newest electronic game system or cell phone more important than creating a secure financial future?
Start by developing your family’s mission statement. This is easier than it sounds: Simply write out what is important to you as a group. Include your long- and short-term goals, and what you are willing to give up in order to make those goals a reality. Don’t forget that along the way, you may still want to keep small luxuries (like a video game system) that you want to keep in your budget – since these can help you feel less deprived and even save you money (by keeping you from going out to first-run movies, for example).
TIP #2: Cut back, even if it hurts (a little).
Figuring out what is most important to your family from a financial perspective is a good decision for your long-term financial security. Making even small sacrifices in your spending can help you meet your goals. Identify where you can make small changes to cut back on non-essential expenditures. And don’t overlook the bigger-ticket items you pay for every month, such as your cable TV/Internet subscriptions and car insurance. Making minor adjustments to these items can free up more dollars than you might imagine, and play a significant role in helping you fund your family’s long-term financial goals.
Tip #3: Become a dedicated saver.
If you are like many families, trying to juggle financial priorities can make saving extremely difficult in tough economic times.
Successful savers “pay themselves first” whenever they receive a paycheck. To help make it easier, check with your employer to see if you can have part of your pay automatically deposited into one or more savings accounts. It can make saving automatic—and nearly painless.
Tip #4: Run your numbers.
Are you on track with your current disability coverage, life insurance, and retirement savings plan(s)? In other words, will these important items provide you and your family with the amount of financial protection you’ll need – when needed? Don’t wait until it’s too late. Take a checkpoint now to assess their adequacy and make the appropriate adjustments.
Taking the right steps today can help to ensure a better financial future for both you and your loved ones.
Tip #5: Get the help you need.
When it comes to Tips 1 through 4, you may feel you need some assistance. Whether you need help in just one area or all four, start looking at your future through a new lens – one that has your family’s financial goals in focus, with a plan to help you get there. Contact a financial professional to discuss ways they can help you put these tips into action—and your financial dreams on track.© 2010 Massachusetts Mutual Life Insurance Company, Springfield, MA CRN201205-133776