Stepping into Financial Well-Being
By: Source: AARP.org Date Posted: 2005-03-20 12:09:06
If you’re like most Americans, your eyes may glaze over and your palms may begin to sweat when someone mentions the words “financial planning.” We Americans like to feel financially secure. Unfortunately, many of us don’t feel qualified or prepared to take the steps necessary to reach financial security.
What You Should Know
Financial planning isn’t optional. For most of us, it’s required. With a financial plan for the future, you can stay in charge of your money and your life. Without a financial plan, you could miss important opportunities or make costly mistakes.
There’s no reason to be intimidated by financial planning. It’s easier than you think. All you need are some basic money management skills, a few cherished financial goals, and some patience. The key to success is to take financial planning one small step at a time.
Chart your course to financial well-being
Create a Financial Plan. If you’re managing your own finances, you won’t get far without a financial plan. This plan will help you identify where you want to go financially and how you can get there.
Manage the Money You Earn. Reaching your financial goals isn’t only about making more money. It’s also about saving as much as you can, helping your money grow through investing, and managing your debt wisely.
Plan for Retirement. For most of us, retirement is a fact of life, whether it comes 5 or 25 years from now. Start early to plan and save for the kind of retirement you want.
Prepare for Future Challenges. You can’t plan responsibly for the future without making sure you’re prepared for most contingencies. It’s important to know, for example, that if you become ill, your spouse won’t be saddled with medical bills that he or she can’t handle. By purchasing adequate insurance, you can safeguard your finances against most eventualities.
Provide for Your Children and Grandchildren. You’ve worked hard for your money all your life. If you want your heirs to benefit from all that hard work, it’s important to think now about what will happen to your money after you’re gone.
Seek Appropriate Professional Advice. An experienced financial professional can often help you achieve long-term financial security. But hiring a financial professional doesn’t mean giving up control of your investments and financial decision-making. You must be thorough when selecting an adviser, and vigilant in monitoring his or her activities.
For more Information
AARP Resources
Money Matters: Your Guide for Financial Security and Future Focus: Your Guide to Financial Planning for Retirement, published by AARP, present clear and concise steps you can take toward a secure financial future. To order a free copy, send an e-mail to member@aarp.org, include the publications’ titles and your full mailing address.
Share
preview