Reaching for Financial Success
While we might have a lot in common, goals and especially goals for financial success, not to mention the definition of financial success, can vary from one person to another. Saving for retirement, taking care of one’s family, eating healthier, exercising more – these are goals which a lot of people have. According to a survey, the most common New Year’s resolutions made by Americans include: weight loss, increased savings, decreased spending, and becoming debt free.
But try as we might, it is sometimes difficult to achieve our goals when temptations and distractions lead us astray. We want to lose weight, but someone offers us a delicious slice of cake. “Oh well, just one bite,” we say. But that one bite leads to another, and we’re back down the path of looking at ourselves in the mirror, wishing we’d had the self-discipline to pass on the cake.
We want to save for retirement, but then we conveniently forget our budget constraints when making a purchase. “But it was on sale! It was such a good deal. I had to buy it.” But we all know that you didn’t really need to buy it, did you?
Here are some tips to make the journey to financial success easier on you:
Saving
Most Americans have less than $1000 in savings and about 20% don’t even have a savings account. If you could free up some of your income by reducing your spending instead of going shopping, start saving! It doesn’t particularly matter what you’re saving for, whether it be retirement, or just to have an emergency fund in place for the unexpected, having a cushion of savings is always a good idea.
Spending
Thanks to basic math, we know that the simple equation of, “More money in, than out,” will result in a surplus. Unfortunately, in today’s economy and with credit cards being thrown at us constantly, that’s easier said than done.
However, there are some simple things one can do to reduce spending. Just take a look at your monthly expenses. Do you have any recurring memberships that you aren’t using? Cancel them. Can you get a better rate on your TV plan? Your cell phone plan? Internet provider? Can you make your own coffee in the morning instead of stopping off for a $5 cup of coffee on the way to work? Is there a more efficient way to do your commute every day? Maybe a less expensive car with better gas mileage?
According to a recent review, most Americans spend $20 per week on coffee and up to $1500 per year on their commute.
Investments
Seek out the advice of a financial expert. If you’re in a position to invest, then a sensible middle ground approach may be recommended, and these strategies can help achieve long-term financial success.
It would also benefit you greatly to take advantage of any employer-sponsored investment plans (like a 401k), so that you can maximize your nest-egg.
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law.
Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.
These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.
David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC