How do you define being ‘financially ahead’?
We believe that knowing where you want to end up on your financial journey is a step you cannot skip. Here’s some old wisdom: if you don’t know where you are going, any road will take you there.
And it’s a conversation most of us need to have.
Nationally 50% of Americans report feeling insecure financially.
80% of us have less than a month-worth of savings.
Figuring your journey’s ultimate destination is perhaps one of the toughest steps we must take. And, of course, it can – and it will – change with life’s many changes and adventures. So, it’s a question we must ask ourselves when we’ve reached our goals or when life throws at us an unexpected opportunity – or challenge.
And it’s the first of four steps you may want to consider during April which happens to be Financial Literacy Month.
Step 1: Imagine It.
To start you off on the big question, read Michelle Signatory column on the topic. (She was our inspiration for this first step).
Write it down. Talk it over with your loved ones and even your friends. Depending on who you are, your goals may be ambitious or conservative. Are they realistic? You will have a better sense of what it will take to get where you want to go once you have a plan. Once you start putting numbers on paper you will have a better idea of how long it will take you to reach your financial destination.
In the next blog post we will share with you a financial model that was created by the Annie E. Casey Foundation and which HUF uses called Center for Working Families.
The ideas are simple – but not necessarily easy: First you maximize your ability to generate income; second you keep as much of the money you make as possible; and third, you grow your money growing your assets.
The four steps to your financial journey are:
Step 1: Imagine It.
Step 2: Earn It.
Step 3: Keep It.
Step 4: Grow It.
Strap yourself in and let’s start this journey.
Step 1, you already know – take the time to imagine and plan where you want to go.
Stay tuned for the next installment.