The Young Person’s Guide to Wealth: Strategies for Financial Success from the Get-Go By: Janet Campbell

Planning for retirement and managing your estate may seem like distant concerns when you’re in your 20s and 30s, but starting early is the key to financial security. It might seem premature, but the power of compounding interest means that even small contributions can grow significantly over time. Hobart Wealth outlines several strategies that can help you establish a solid financial foundation and ensure you’re well-prepared for the future, regardless of what it may bring.

Insurance: The Foundation of Financial Planning

Voya Financial notes that insurance is a critical component of any financial plan. It provides a safety net for unexpected events such as illness, disability, or death. Having enough insurance ensures that you or your loved ones will not be burdened with significant financial stress during tough times. Evaluate your needs regularly as they may change with life events such as marriage, having children, or buying a home.

Budgeting: Your Financial Compass

Creating a budget is essential to understand where your money is going and to control your spending. It helps you identify unnecessary expenses, save more effectively, and plan for big purchases. Use budgeting apps or spreadsheets to track your income and expenses, and make necessary adjustments to align with your financial goals.

A key reason for budgeting is to drive down your bad debt. Not only will your credit score rise, but your debt-to-income ratio will be reduced. Your debt-to-income ratio is used by creditors and lenders to gauge your overall financial standing, and the lower it is the better the terms of any type of loan you may need in the future, such as a mortgage.

Boosting Your Income: Expand Your Earning Potential

Digitize all your financial documents for easy access and better organization. Scan important documents like tax returns, insurance policies, and investment account statements, and save them as PDFs. Digital storage not only reduces physical clutter but also simplifies the process of locating information when needed. This transformation to a digital platform is a practical move that can save you time and effort in managing your finances.

Saving for Big Purchases: A Step Towards Financial Independence

Saving for big purchases like a car, a house, or even a dream vacation requires discipline and a well-thought-out plan. Start by determining the cost of the item, then create a timeline for when you want to make the purchase. Set aside a portion of your income each month toward this goal and avoid dipping into these savings for other expenses.

Retirement Planning: The Earlier, The Better

Starting retirement planning early allows you to take advantage of compounding interest, making your money work harder for you over time. Contribute regularly to your retirement accounts, such as a 401(k) or an IRA. If your employer offers matching contributions, BetterUp suggests maximizing this benefit as it’s essentially free money towards your retirement. This is essentially free money that can significantly boost your retirement savings.

Also, consider other benefits like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) that offer tax advantages. You should talk with your boss or HR department to learn what you’re eligible for and additional perks your employer offers, such as discounted stock purchase programs, or life insurance for dependents.

Digitization: Streamlining Your Finances

Boosting Your Income: Expand Your Earning Potential

Consider ways to boost your income to reach your financial goals faster. This could be through side gigs, investing in stocks, or enhancing your skills for a higher-paying job. Diversifying your income sources also provides a safety net if your primary income is compromised.

Reach out to Hobart Wealth to develop an investment strategy that’s best suited for you to reach your goals.

While retirement and estate planning might seem overwhelming in your 20s and 30s, taking small steps now can lead to substantial benefits in the future. Prioritize insurance, create a budget, plan for big purchases, start retirement planning early, digitize your financial documents, find ways to boost your income, and take advantage of employer-supported retirement benefits. With these strategies, you can build a secure financial future and enjoy peace of mind.

Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company, and may be subject to fees, surrender charges and holding periods which vary by insurance company. Insurance products are not FDIC insured.

Hobart Wealth is a DBA of Hobart Private Capital, LLC. Investment advisory services offered through Hobart Private Capital, LLC, a SEC-Registered Investment Advisor. Insurance services offered separately through Hobart Insurance Services, LLC, an affiliated insurance agency.

Hobart Wealth Helps Families Prepare For The Future

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Hobart Wealth is a DBA of Hobart Private Capital, LLC. Investment advisory services offered through Hobart Private Capital, LLC, an SEC-Registered Investment Advisor. Insurance services offered separately through Hobart Insurance Services, LLC, an affiliated insurance agency. Hobart Private Capital and its affiliates are not certified tax or legal advisors. Any reduction in taxes would depend on your specific tax situation. You are advised to seek the advice of a qualified tax or legal professional for such matters. This information is intended for educational purposes only. It is not intended to provide any investment advice or provide the basis for any investment decisions. Investing in securities involves risk, including potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please see Item 8 of our ADV 2A Brochure for additional information on the risks associated with our services. By submitting your contact information, you consent to be contacted in the future regarding retirement income strategies that utilize insurance and investment products. Any references to protection of benefits, safety, security, or steady and reliable income refer only to fixed insurance products. They do not refer, in any way, to securities or investment products. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company, and may be subject to fees, surrender charges, and holding periods which vary by insurance company. Insurance products are not FDIC insured. Our firm provides links to third party articles to assist users in locating information on topics that might be of interest to them. Linking to an article or web site does not constitute a representation of the services offered by our firm nor does it constitute an endorsement by the Firm of the sponsors of the site or the products presented on the site. Please consult your tax, legal, and/or financial advisor prior to making any decisions regarding these third-party articles. Hobart Wealth is not affiliated with the U.S. government or a governmental agency. No information contained within was approved by, endorsed by, or authorized by the Social Security Administration.

The Young Person’s Guide to Wealth: Strategies for Financial Success from the Get-Go By: Janet Campbell

Insurance: The Foundation of Financial Planning

Budgeting: Your Financial Compass

Boosting Your Income: Expand Your Earning Potential

Saving for Big Purchases: A Step Towards Financial Independence

Retirement Planning: The Earlier, The Better

Digitization: Streamlining Your Finances

Boosting Your Income: Expand Your Earning Potential

Hobart Wealth Helps Families Prepare For The Future

Share This Post

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