Planning for Financial Longevity
5 Planning Steps for Financial Longevity
With people living longer, it’s important to be financially prepared for the long journey of life ahead. According to The San Diego Union-Tribune, in 2018 California residents had a life expectancy of 80.9 years. This is why starting your financial planning now is incredibly important. Regardless of your age, establishing financial plans will make your money last longer and allow you to enjoy life the way you want.
The following steps will help you establish a foundation of financial longevity and provide you with a sense of security as the years pass.
- Save and then save some more. A good way to prepare for any stage of life is to start saving money as soon as you can. There are various avenues people take to begin their saving. We suggest starting with a traditional savings account, so you can have money that's easily accessible. Begin tracking your spending now to identify ways in which you can save more.
- Establish a relationship with a Financial Advisor (FA). Trying to navigate investing alone can be a challenge and a lot to take on. We highly encourage meeting with an FA who can guide you to the right investment strategies for your situation. A financial advisor can help you understand investing options and reach your goals. If you’re a SDCCU member, an FA is available to you for planning and investing support.
- Live within your means. In short, the goal is to spend less than the amount of money you bring in each month. Creating the habit of living within your means will allow you the flexibility and longevity with your finances in the future.
- Own your “good debt." If you don’t own a home, consider whether buying one is in your financial plans. Buying a home can help you build equity and give you potential tax advantages. Even though a mortgage is debt, it's considered "good debt" because the market value of your home has potential to increase overtime.
- Continue doing what you love. If you’re living longer this generally means you’re healthy and can continue to do what you love. Every year you work, even part-time, is another year of adding to your savings, increasing your opportunity for financial stability. Also it’s hard to ignore the health benefits of keeping an active mind and body.
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