Financial Goals that one must set for a Secure Future
Individuals need to set financial goals early on in their careers, in order to lead financially secured retired lives in future. In other words, you must save as well as invest your money in lucrative areas, to earn higher dividends in future. Many individuals nowadays prefer to invest in real estate instead of the share market because of the security offered by this particular form of investment.
However, Steve Liefschultz the Chief Executive Officer (CEO) of Equity Bank Minnetonka opines that it is essential to diversify one’s portfolio of investment. This will ensure higher dividends, even if some of the investments do not produce the expected dividends. He also believes that it is essential to set certain achievable financial goals to ensure a secure future. Some of the financial goals that you could set for yourself are as follows:
· Set a budget: It is essential to fix a budget of your overall monthly expenses. According to Liefschultz fixing a budget is essential to get a thorough understanding of your monthly expenditure. This will subsequently help you to identify the areas wherein you can reduce your expenses and ensure higher savings. You can easily do so by maintaining a spreadsheet or with a budget app. With the help of these devices you can also keep a check on unnecessary expenses and set your financial goals accordingly.
· Investing in Individual Retirement Accounts (IRAs): If you are looking for tax holidays then along with your portfolio of savings, you can consider investing in IRAs. However, it is essential to let your employer know the type of IRAs that you have invested in and provide details of the financial institutions with whom you have IRAs. This type of forced savings will ensure that your investments are diversified and also provide you with higher dividends. Moreover, the amount you save in IRAs are exempt from any form of taxations.
· Increasing contributions to the IRAs: Steve Liefschultz believes that individuals should progressively make an effort to increase their contributions to the IRAs. This will ensure more savings, higher returns and also greater tax holidays. He insists that individuals should start investing in IRAs from the beginning of their careers and additionally keep on increasing the amount deposited. This is a financial goal that all salaried individuals should set for themselves.
· Pay off debt: If you have taken a mortgage on your house or have any other debts, then you should do your best to pay these off at the earliest. The longer you wait to repay the loans, the higher will be the interest rate. Moreover, with the changing economic conditions, it is probable that you may have to end up paying way more that you had estimated, if you wait to repay the loan. The faster you repay a loan, greater will be your savings.
Thus, it is essential that you set yourself certain achievable financial goals to ensure complete financial security for you and your family in future.
Financial Goals that one must set for a Secure Future Reviewed by Parvesh Bravo on 3:53:00 AM Rating: