Single Adult -- get a job and mentor, create a vision board of goals/dreams, new car, start life and disability insurance, start IRA or business, establish credit rating, complete education in area of interests, start emergency savings fund, hobby, social activities ....and create a sample budget
Get a Job, Create a Budget and Start Savings
Investment idea (20s): invest in growth stocks or S&P500/DJIA index funds 90%, 10% cash
Home monthly payment -- 30% take-home pay Car monthly payment -- 15% take-home pay
Young Married – create a vision board of goals/dreams, get a marriage/career mentor, small house, condo, adequate flood, life and health insurance, start IRA, bigger car, emergency savings fund ....and create a sample budget
Start Savings and Purchase Disability and Life Insurance
Investment idea (30s): cash 10%, small business or rental property 20%, 70% growth stocks or index funds
Parenthood – education fund for kids, larger home, vision board of family dreams/goals, emergency fund, day care, vacations, IRA or small business ownership
Plan for Kids College and Your Retirement
Investment idea (40s): cash 10%, small business or rental property 30%, 60% growth stocks or index funds
Parent Older Kids – make plans for retirement, disburse education funds, may take care of parents, kids activities, a major illness (disability)
Financially Squeezed - Juggling parents aging, kids, bad health and career
Investment idea (50s): cash 10%, small business or rental property 40%, 50% growth stocks or index funds
Empty Nest - smaller house(paid off), kids gone, pursue dreams, roll IRA into Fixed Annuity
Pay for kids college, stuck in dead end jobs
Investment idea (60s +): cash 15%, small business or property 50%, 35% growth stocks or index funds
Retirement - Fixed Annuity (Secure Income & no debt), travel, volunteer in organizations that you would like to leave a legacy of service and funding.
Living in Retirement
Investment idea:(70s+): cash 15%, fixed income from selling small business or rental property 70%, 15% growth stocks or index funds
Emergencies -- Unexpected financial or medical tragedy or disaster Local Social Services
Tip: 3 to 6 months of savings in cash, helps to pay for unexpected expenses (repairs, etc)
A. Save $5 a day for 5 years to build a 3 to 6 months reserve...in a savings account, you 'spend and replace' funds in this account as needed for 'unexpected expenses'
1. Purchasing home warranties for major appliances may reduce cost of repairs
2. Purchasing warranties on major car parts may reduce cost of repairs
Burial - Life Insurance cover expenses left behind, try to leave more than just your last name behind
Final financial wisdom: Create a will to distribute your possessions to the causes and people you would love to help
Inheriting money after a loved one dies.
- Take about 80% of the money to pay down outstanding debts (credit cards, mortgage) and add money to your 'rainy day' savings account
- Plan to 'blow' about 10% of the money on yourself (clothes, vacations, upgrade furniture)
- Split the other 10% between an investment that is making money that you don't have to worry about and donating to a charity that honors the loved ones life...if it was not included in the will
Use coupons to 'stretch your money farther' in the month. coupons
Always look for deep discounts to get what you want......there's always a 'sale' somewhere for what you want.
Make it a goal to be free of debt by the time you expect to retire. Choose a home loan, vehicle loans that you payoff during your working years. If you are worried about bills, you can’t enjoy retirement, by doing what you and only you want to ....whatever that is!
Eliminating Household Debts
Starting a Business.....Wonder and Ponder the following question, What is the perfect idea the world really needs in my passion area industry/neighborhood that solves a problem most people would pay for? Small Business Resources
Putting money in 401K at work.....Warren Buffet states, 'Put the money in a low-cost index fund and forget moving it around' ...the return is greater and the fees are less over time(you make more money)
Put $15 - $50 weekly into a 401K, invested into S&P index fund (10% interest), from age 20 - 65, may allow you to have $1 million dollars in retirement. If you change jobs, a rollover IRA will allow you to do the samething. Of course, if your company matches your money, take advantage of that increase in deposits, as well.
Broke-to-Better blogs, Nomopofolks Association, Dallas, Texas