Mid-Life Financial Crisis

Saving for your kids’ tuition fees, planning retirement expenses, and buying a home; not to forget meeting today’s expenses. These are the concerns of the 40’s, when people are settled down with families and have kids and other responsibilities to take care of.

The Financial Challenge

However challenging it may be, appropriate financial planning in Wareham is a must to save you and your family from future financial crisis. Holistic financial planning includes investments, life insurance, education insurance, home loans, and a lot more. Segregating your current income into all these categories appropriately often requires the professional intervention of a financial planner, who can advise you on using your finances diligently in a way to make your present and future financially secure.

Doing the Homework

Here’s what you need to consider for diligent financial planning.

• The first step is to lay down specific financial goals. How much debt do you have? What are your priorities for savings? Which areas do you want to focus on?

As every individual’s income is different, so is the amount of savings and expenditure. Therefore, each individual needs to chalk out his own financial plan. There’s no thumb rule or expert formula.

However, remember to set specific goals. Instead of setting generic goals like, "I want to save for my retirement"; be more specific like "I will save 5 percent of my income towards my retirement account."

• For financial security, you should have three to six months of your current income in your savings account. Cash reserves help you to handle expenses that pop up without notice. For instance: What if your roof or furnace requires replacement? What if you lose your job? A smart step is to keep cash reserves for such unforeseen issues.

• Understand your assets, liabilities, and net worth. A precise sense of your current financial position will help you to plan better. You will have a clear picture of what you have, what you owe, and what your financial worth is. The ultimate goal is to increase your assets through savings, buying a home, etc, and reduce your liabilities by clearing off your debts.

• The centerpiece of every financial plan is the monthly budget. If you haven’t done it till now, get into the practice of writing out a monthly budget. Sketch out your monthly expenses, allow for unexpected expenses, and then you can factor in the amount available for savings and investments.

• The purpose of financial planning in Wareham is to reduce your debts. Your savings will be limited while you are burdened with debt.

• Incorporate the employee benefits you receive into your financial plan.

• One of the bigger expenses in the future is tuition fees for your children. By saving small amounts now, you can reduce the amount you would need to borrow later for your child’s education. Remember to make space for this.

With all these things in mind coupled with the assistance of an expert financial planner, you can certainly do the best with your current and future finances.

The author is associated with a federal union for a long time and has a vast knowledge on different types of Personal loan, Wareham. She has penned down to write the article to make people aware what they need to keep in mind.