What Are The 5 Components of a Financial Security Plan?
Young people often overlook the need for Financial Security. It is one of those follies that seems trivial initially, but its impact is keenly felt as the youth fades. Alas, majority of people only start thinking about securing the future when the energy of young age diminishes. Lack of kids, lack of responsibilities and overabundance of energy means you have little time to spare over pointless planning. However, the priorities shift drastically after marriage and having children. The priorities and concerns may change, but the expenses also increase accordingly. It becomes harder to save.
Worry about the future and financial needs is one of the leading causes of stress among men. You want better future for your family, a better education and upbringing for your children. Not only that, you also start worrying about not being a burden on your own family when you grow old. You can easily address all these concerns by creating a Financial Security Plan and sticking to it, no matter what. Each family has different needs. Everyone has different circumstances. That is why, there is no golden standard for all to follow.
However, there are a few key guidelines that can help build a secure and proper Financial Security. Following are a few of the more prominent ones;
1. Get Professional Assistance
The first step to securing a Financial Security Plan, is to understand how money actually works. People from all wakes of life need this service. However, not everyone can actually understand the system without a dedicated learning experience. Not everyone has the patience, aptitude, or the time to undertake such experience. That is why, it is preferable to ask for help from a dedicated professional. You need a sincere financial advisor, whom you can trust. There are many institutes that teach short courses, or lessons on money management. SG Financial is one such trusted source of financial management for you.
2. Secure Various Necessary Insurance Policies
There are many insurance services that you must acquire, based on your needs. A life insurance, health insurance, homeowner’s policy, and an auto insurance services are generally useful for everyone. You must protect yourself from all avenues of losing your finances drastically. Insurance policies provide that particular way out for your own and your assets’ safety. You can get meaningful advice from a trusty insurance carrier on what policies to get. You need to find that balance where you are neither overspending on useless policies, nor underspending on useful ones.
3. Form a Savings Account
There is an old formula, sometimes taught by dads to their kids for proper financial planning. This formula is a part of an old folk wisdom. It is known as ’10-10-80’. The first 10% is set aside for paying a tithe. The second 10% goes to the savings account. The last 80% is for you to live off of. If you follow this formula from the very beginning of your career, you can achieve Financial Security. Spendings continue to grow, as the family grows. However, the earnings also grow with time. So, it is not a strain to maintain this formula.
4. Make an Effort to Reduce or Eliminate Debt
Debt is one of the most severe hindrances against making a proper Financial Security Plan. It not only prevents the finances from growing, it also weighs heavily on the mind. You must make it a priority to do everything in your power to reduce, or eliminate debts. Any competent financial planner or credit counselor can help achieve this. Debts accumulate overtime, if not tended to properly. A slight carelessness on your part now, can have repercussions for years to come. Some debts are so severe that they take generations to pay-off. Ask for help in elimination of this inconvenience.
5. Make an Investment for the Retirement
The point of any investment is to gain a return that will reasonably outpace inflation. There are countless ways of going about achieving such ambition. Many business organizations offer retirement plans to their employees as well. It is wise to take advantage of such offers. There are many more privately available plans for you in the market. Study them, and choose what is best for you.
At SG Financial Inc. We Offer;
• Workplace Retirement
Implementation of a Workplace Retirement Plan does not only benefit the employees. Such plans can give a credible boost to your business by attracting top-tier talented professionals. However, such plans need proper planning and strategy to implement. Otherwise, they become more of a hindrance than benefit. Taking advantage of such opportunities can go a long way in securing a proper Financial Security Services.
• College Savings
The College Savings Plans grow tax-deferred. Any withdrawals from this plan are tax free if they are used for the qualified educational expenses. Prepaid tuition plans, such as plan 529, allow plan-holder to pay tuition’s for designated college or university in advance. This can be used to lock the cost at present rate.
Secure Your and Your Children’s Future With the Best Financial Security in Texas
SG Financial Inc. can provide you with the Best Financial Security in Plano, Texas. Your better future is our better future. Place your trust in us and follow our advice. In doing so, you will secure a happy and content future.