Remember getting your first paycheck?
It may have been when you were a teenager, or right out of college, but getting that first payment for your work is probably a core financial memory for you. After all, it was a huge step toward being financially independent.
For a lot of our members, as they age, they feel like financial security is hard to get. Here, we’re going to break down financial independence into five actionable steps.
1. Figure out what you want! You may want to be a jet-setter with multiple homes across the world, living a life of endless vacations. (It’s ok to dream big!) But this step is more about figuring out your values. Do you want to work part-time in retirement on a meaningful project? Do you want to travel or go back to school because learning is important to you? Figuring out what you want out of life — aside from fast cars and ocean views — will help you figure out the right move in each of the next steps.
2. Track your spending and make a budget. You may be surprised, when you go through your monthly expenses, how much you’re spending on groceries or take-out food. Are you paying too much for your mobile phone plan, for cable channels you aren’t watching, or for your car insurance? Now is the time to analyze your spending and see what bills you can lower without abandoning those values you defined. For an in-depth guide on how to effectively budget and take control of your finances, be sure to watch the replay of our Budgeting 101 webinar.
3. Pay off debt. There are a lot of methods to pay off debt, from the “snowball” method to focusing on paying off whatever balance has the highest interest rate. No matter what method you choose, focus on getting yourself out of as much consumer debt as you can. Look again at your budget and see if there’s any extra money you can put toward those lingering student loan bills! For more detailed strategies and expert advice on tackling debt, check out the replay of our webinar, "Slaying Debt: A Guide to Paying Down Debt and Building Wealth," designed to guide you step-by-step towards a debt-free future.
4. Earn more. We aren’t telling you to abandon your career and figure out how to get a job that pays $1 million per year. However, it may be time to ask your employer for a raise. In addition, consider launching a side hustle that takes advantage of your talents, whether it’s consulting or crafting. If your home has a pool, you can rent it out through sites like Swimply. If you have a garage or basement, you can rent it out as a storage unit through Neighbor.com. You can even rent out your car through services like Turo. If you’re buying a new home anytime soon, consider keeping your first home to rent out. Think creatively here!
5. Save and invest! The best way to save and invest is by setting up automatic withdrawals from your checking or savings account. After you have an emergency fund saved up, talk to a financial advisor about saving for retirement and your other goals. A good place to start is by signing up for the upcoming webinar "5 Smart Investing Strategies" with CommonWealth One Financial Network Advisor Timothy States. That webinar is on Wednesday, June 12 at 2:00 p.m. and again on Thursday, June 13 at 11:00 a.m.
Overall, we want what you want: financial independence and security that leads to a long, healthy and care-free retirement. And we’re here to help you get there! Don’t hesitate to reach out to CommonWealth One to make an appointment with a certified financial counselor or investment professional. We’d love to talk about your values and goals — and how to make those happen.
