All About Daily Financial Translation News

How to Make Your Financial Plan Work for You

Jul 14

Have you been in a tight financial situation before? Perhaps you've had to put off paying your bills or make tough choices about where your money goes each month. Maybe you've even had to declare bankruptcy.

The truth is, you're not alone. According to a recent study, about 80% of Americans are living paycheck to paycheck. And with the rising cost of living and stagnant wages, it's no wonder many people are struggling to make ends meet.

Here are some tips for financial planning in St. Albert, CA, that you may find valuable to help with your financial journey.

Creating a Budget Is a Great Place to Start

If you're not sure where to start when it comes to getting your finances in order, creating a budget is always a good idea. This will help you track your income and expenses so you can see where your money is going every month.

There are several different ways to create a budget, but one of the simplest methods is to use the 50/30/20 rule. This rule stipulates that you should allocate:

  • 50% of your income to essential expenses (housing, food, transportation, healthcare)
  • 30% to non-essential but important expenses (entertainment, cable, travel)
  • 20% to savings and debt repayment (putting money into a savings account each month and making payments on any outstanding debts you may have)

Of course, this is just a general guideline for financial planning in St. Albert, CA, and your actual budget may look different. But the important thing is to ensure you're aware of where your money is going so you can make informed decisions about your finances.

Start Saving for Retirement as Soon as Possible

Another important financial planning in St. Albert, CA, you should have is to save for retirement. The sooner you start, the better off you'll be. That's because retirement savings are typically invested, and the longer your money grows, the more time it has to compound and potentially increase in value.

For example, let's say you start saving for retirement at age 25 and you're able to save $200 per month. If you continue saving at that same rate and earn an annual return of 7%, you'll have nearly $1 million saved by the time you reach age 65.

On the other hand, if you wait until you're 35 to start saving, you'll have to save $333 per month to achieve the same goal. And if you wait until you're 45, you'll need to save $634 per month.

As you can see, starting early can dramatically impact the amount of money you have saved for retirement. So if you haven't already, now is the time to start putting away money for your golden years!

Make a Plan to Pay Off Your Debt

Financial planning in St. Albert, CA, also involves paying debt off as soon as possible. The longer you wait, the more interest will accrue and the harder it will be to get out of debt.

There are a few different strategies you can use to settle a debt, but one of the most effective is the debt snowball method. This involves paying off your debts from smallest to largest, regardless of interest rate.

This method works so well because it provides quick wins that help keep you motivated to stick with your debt repayment plan. And as you knock out each debt, you'll have more money available to put toward the next one on your list.

Don't Be Afraid to Seek Professional Help

If you're struggling to get your finances in order, don't be afraid to seek assistance from Evergreen Wealth Advisory. A financial planner can assist you with creating a budget, saving for retirement, and paying off debt to make financial planning in St. Albert, CA, a successful endeavor.

Contact 587-480-7476 to get started!