by Susan Paige
Only 25% of adults feel financially prepared for retirement.
Are you one of those people?
Creating a long-term financial plan will not only let you retire comfortably but will also give you peace of mind.
Maybe you feel discouraged at your list of long-term financial goals, or maybe you feel like it’s too late in life to start.
Don’t throw in the towel yet. Keep reading and we’ll tell you how to save money for the future.
Create a List of Goals
If you’re interested in long-term financial planning, you should begin by writing out a list of your long-term financial goals. These can be things like saving for retirement or paying off debt.
Then, determine what steps you need to take to achieve these goals. For example, if you want to build a long-term savings account, you first should create a timeline of how much money you’ll save per month.
You should see your long-term goals as projects, not as individual tasks.
Create a Long-Term Financial Planning Strategy
Next, you need to rank your goals. Your top priority should either be creating an emergency fund or paying off your debt. Some people choose to tackle both simultaneously.
If your income is unstable or you have no savings, it may be wiser to start with a long-term savings plan. If you have debt with high-interest rates, that should take priority.
Then, you should start investing for retirement and looking into life insurance. Roth IRAs allow you to withdraw money early without a tax penalty, so they can double as an emergency fund.
This life insurance guide will help you decide what life insurance is best for your future investment planning. Especially if your family depends on you for income, investing in life insurance will protect them in case you unexpectedly pass away.
After you cover these three goals, then you can start thinking about other long-term goals. You may want to start a business, save for your children’s college, or become financially independent.
Track Your Progress
Once you have your goals established, you should write down where you’ll see them daily. That way, you won’t forget about your goals and you will be more motivated to complete them.
It’s also important to track your progress so you won’t feel discouraged along the way. Log your starting point, your goal, and where you are along the way.
Update your logs every month to ensure they are up to date.
Re-Evaluate Your Long-Term Financial Goals Frequently
Life happens and you aren’t in the same financial position as you were a year ago. Set aside one day per month assess all your long-term financial goals.
Also, meditate on your motivation for paying off your debt or building a savings account. If you have a tangible reason, you will be more likely to achieve your goals.
Feel a Sense of Ease
It may feel like you have plenty of time to create long-term financial goals, but the sooner you start, the better off you’ll be.
You’ll be able to sleep better at night knowing that you’re prepared for the future.
What do you think are the best ways to save for the future? Let us know in the comments below!