Financial Security Tips for This Economy
March 19, 2009 by Jennifer Chait
Filed under finances, financial matters
Everyone should plan for financial security but in today’s economy things like oh, groceries and rent often take priority. Lately, with most folks I know, there’s just not much cash left at the end of the month, which can make thinking about financial security a total headache, let alone trying to plan for long term security.
That said, even in a poor economy, even if you’re strapped for cash, you can have some sort of a plan for financial security.
Know where your money goes: Even in a poor economy people often overspend without knowing it. Make sure you know where your money is at all times. This usually means writing down every penny you spend. YES it’s a leap, but with a few months of this under your belt, it becomes old hat. If you have no clue where your money is, you can’t save the maximum amount possible. Read Your Money or Your Life for tips on how to manage this task.
Save even tiny amounts: Even a little money saved each month adds up over time. Especially if you can bounce that extra into a 4o1k or IRA – compound interest is amazing. Cut three lattes and a quart of ice cream each month (or some other extra) and save that money.
Forget college funds: That sounds bad at first, but financial aid, loans, scholarships and more have always been around and will likely be around in some form for a long time. Your child can use these resources to pay for college, but you can’t use these resources to pay for retirement. Put retirement fund savings first if you’re low on cash, save for college secondly.
Revisit your employment benefits: Things can change when it comes to employment benefits so keep up with the changes. Make sure you understand company fund matching. Often companies will match a specific percent of retirement funds so make sure you’re at least contributing that match-friendly amount. Also re-check out your life insurance ad health plans once in a while. Keep up with any changes so you’re not surprised when you need your insurance.
[image via stock.xchng]
