National Financial Planning Month: Tips for Protecting Your Finances – Whether you’re a novice or an expert, there are plenty of ways to ensure your finances are on track.
The month of October is National Financial Planning Month. It’s the perfect time of year to discuss this as the holiday’s approach and as economic projections for 2023 are bleak.
This is a reminder to revisit or finally create that financial plan you know you need. With the right roadmap, you can feel better about the money you have in the present and available to you in the future.
Whether you’re a novice or an expert, there are plenty of ways to ensure your finances are on track.
Here are some steps you can take now to improve your financial health.
1) Keep an Emergency Fund
Having a budget you stick to is sound financial advice, but there are always those times when an emergency could pop up and you’ll need money quickly. Having an emergency fund tucked away that covers 3-6 months of expenses is key. If you can start with even $500 set aside, it will be a good start.
2) Pay Off as Much Debt as Possible
Get rid of any credit cards you have that have high-interest rates. These are the worst types of debt to have. If you have credit cards or loans that charge you over 10% in interest and if they have fees- then it should be your goal to pay them off as soon as possible. It’ll save you so much extra money in interest payments over time!
3) Start Retirement Savings Early
Most people don’t think about their retirement when it’s still so many years away but it is critical to start saving as early as possible. With social security diminishing and cost of living increases happening across the nation, saving even just $5 per week toward retirement funds can make a huge difference – especially if you are starting earlier.
4) Keep Insurance Protections in Place
To best protect yourself from financial disaster, you should maintain insurance that is appropriate for your situation. There are types of insurance that help protect against things like losing your job or someone getting hurt in an accident so that it will not have a long-lasting effect on your finances. Be sure to talk to an insurance agent but what policies would be best for you.
5) Beware of Scams and Protect Your Identity
Most identity theft hacks today target financial information. You must be diligent about protecting your private information. From being safe online to utilizing security software and shredding all documents you no longer need – there is a lot you can do to prevent a potential breach. You should also take advantage of free credit reports and monitor them regularly to see if anything suspicious is happening with your accounts.
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