Money Matters Financial Future

Five Tips To Better Your Financial Future

By Kyle Lum

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If you are like many Americans, the current economic environment continues to make it difficult for your family to make ends meet. Many of us have re-adjusted our spending habits to a “new normal”: For example, we may no longer shop as much (or where) we used to; we may settle for a “staycation” rather than a true getaway; and items that were previously considered necessities have been relegated to the “can’t afford” or “not needed” categories.

Many economic analysts feel that these new attitudes are here to stay. To that end, here are some tips to help you evaluate your overall economic picture along with some actionable steps designed to help improve your long-term financial security and improve your economic future.

Tip #1: Determine what is really important.

Is having the newest electronic game system or cell phone more important than creating a secure financial future? Make time to take stock in what is really important to you and your family, starting

by developing your family’s mission statement.

This is easier than it sounds: Simply write out what is important to you as a group, including your long-term and short-term goals and what you are willing to give up to make these goals a reality. Don’t forget that along the way, you may still choose to include in your budget some saving for little luxuries your entire family can enjoy (like a get-away). Goal-oriented rewards can help you feel less deprived and even save you money by keeping you from spending on instant-gratification, unplanned outings, which can often rack up bills.

Tip #2: Cut back, even if it hurts (a little).

Look carefully at how you and your family members spend money to identify where you can make small cut-backs on non-essential expenditures (and don’t overlook the bigger-ticket items you pay for every month, such as your cable TV/internet subscriptions and car insurance). Minor adjustments to these items can free up more dollars than you might imagine and may play a significant role in helping you fund your family’s long-term financial goals.

Tip #3: Become a dedicated saver.

If you are like many families, trying to juggle financial priorities can make saving extremely difficult.

Successful savers use the concept of paying themselves first whenever they receive a paycheck. Over time, adopting that one smart move can help you reach your financial goal of saving for a car, a vacation or whatever is a priority for your family. To help make it easier, check with your employer to see if you can have part of your pay automatically deposited into one or more savings accounts. It can make saving automatic and nearly painless.

Tip #4: Run your numbers.

Are you on track with your current disability coverage, life insurance and retirement savings plan(s)? In other words, will these important items provide you and your family with the amount of financial protection you’ll need, when you need it? Don’t wait until it’s too late. Take the time now to assess their adequacy and make the appropriate adjustments.

Tip #5: Get the help you need.

When it comes to Tips 1-4, you may feel you need some assistance. Whether you need help in just one area or all four, contact a financial professional to discuss ways they can help you put these tips into action and your financial dreams on track.

Taking the right steps today can help to ensure a better financial future for both you and your loved ones.

Kyle Lum is a financial representative with MassMutual Nevada, a MassMutual Agency; courtesy of Massachusetts Mutual Life Insurance Company (MassMutual)

Money Matters: Five Tips To Better Your Financial Future.