Today's economy requires careful financial planning in
order to achieve retirement goals. The weakened economy and increased
cost of living has left most people with less money to contribute for
their future. However, strategies exist to help Americans build personal
wealth and save for their golden years.
Many misconceptions
surround financial planning. People often believe creating a financial
plan is reserved for the wealthy. Others believe they do not have
sufficient income to save for the future. Some believe financial
planning is too difficult and requires the services of a professional
financial planner. These false beliefs prevent people from reaching
their financial goals and oftentimes leave them living paycheck to
paycheck.
The truth of the matter is financial planning is
available to anyone, regardless of income. With determination and a
commitment to trim expenses, most people can save at least $50 per
month. Over the course of time, minimal savings can add up to a
substantial nest egg.
Several options exist to help individuals engage in financial planning. A good place to start is opening a high yield savings
account. Another is to purchase a few stocks and bonds or mutual funds.
As savings grow, many people turn to real estate investing and buy
houses for use as rental properties.
Individuals living on a
tight budget should take time to review expenses and determine where to
cut costs. Financial expert, Suze Orman, recommends paying yourself
first. This is the opposite of what most people are taught, but if you
want to get ahead in life you must learn how to effectively budget money
and set aside funds for the future.
Most Americans have more
money than they realize, but waste it purchasing items they don't need.
One of the most effective ways to determine how much money is being
wasted is to track expenses daily for a month. Most people are astounded
to discover how quickly little items such as morning lattes and fast food lunches eat up their household budget. The average American can easily save $100 per month by budgeting finances and avoiding impulse buys.
One of the most trusted sources for obtaining accurate budgeting
information and financial planning tools is Dave Ramsey. Ramsey is known
for his no-nonsense approach to overcoming debt and achieving financial
freedom regardless of income. His infamous Gazelle Budget™ Lite online
budgeting software helps consumers develop a financial plan based on a
zero-budget.
Ramsey's website provides visitors with a wealth of financial planning articles, budgeting forms, personal finance
and money management books, investing guides, financial classes, and
personal wealth coaching from Ramsey's Financial Peace University.
Visitors can participate in Ramsey's community forum at DaveRamsey.com
to learn and share financial planning strategies.
Another good
source for learning financial strategies is certified financial
planners. These professionals can help individuals achieve long- and
short-term investment goals. They are trained to help consumers
recognize destructive spending habits and learn how to implement
strategies to get out of debt through the development of solid financial
plans.
One of the best places to locate professional financial
planners is through the Financial Planning Association website at
FPAforFinancialPlanning.org. FPA provides a variety of financial tools
to help educate consumers about retirement planning, estate planning probate, saving for college education and buying a home.
It is never too early or too late to begin financial planning. In
fact, the sooner you start, the easier it is to build wealth. Begin your
wealth-building journey by taking time to conduct research and
determine which type of investments will help you reach your goals. Then, create an action plan and make a commitment to stick to it!
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