Many people have been struggling with financial insecurity for years now. It’s not something that will go away overnight, but there are ways to make yourself feel a little bit better about your situation and give you some peace of mind. In this blog post, we’ll talk about how to make the most important decisions in your life so that you can feel more confident and secure.
How Should You Save for Retirement
One of the most important decisions that you can make is how much to save for retirement. If you have a 401(k), what percentage of your paycheck should go into it? How about an IRA? There are many factors involved in figuring out this number, but generally speaking, if you don’t even know where to begin with saving money, it’s probably best to aim for the lower end of the spectrum and work your way up from there.
Leading investment firms such as Ridgewood Investments advise that the first step towards a secure retirement is making sure you’re on track with your current savings. If you are already saving, it’s time to make the best of those efforts and start putting even more money away each month or year. Start by checking in with two key numbers: one about where you stand now and one about where you want to be.
Give yourself a budget. This is a great idea for anyone who wants to make sure that they’re spending their money in ways that will help them feel secure rather than just helping them spend as much as possible. It can be challenging to determine how much you should spend in different aspects of your life, so it can be helpful to make a budget and stick with it.
Budgeting is essential to managing your money, and if you don’t do it well, you could end up in financial trouble.
One of the first things you should look at when creating a budget is how much income you bring home each month after taxes. That will be one of the most important numbers on which all other calculations are based. Once you figure that out, it’s time to look at your expenses and see what is left over for saving after all bills are paid.
Suppose there isn’t enough money in the “leftover” category to meet your retirement goals before age 65 (the traditional age of retirement). In that case, you need to make some sacrifices with your spending until that number is better.
Start by looking at all monthly expenses such as groceries, entertainment, and clothing. Then go through the list of recurring bills to see where you can cut back on costs without sacrificing comfort or access to important things like health care and transportation.
Choice of Partner
The most important decisions you’ll ever make are probably those related to who you’re spending the rest of your life with. If things aren’t working out for whatever reason, do not stay in the relationship out of insecurity. If you’re unhappy, it’s probably time to move on and find someone who will make you feel more confident about your future.
Write a List
Write down a list of important decisions in your life that have helped give you confidence over the years. This can include anything from how much money is going into one type of account vs. another to who you’re going to spend the rest of your life with.
How Much Money Should Be in Your Account?
One important decision that could give you more security is how much money should be in each type of account (i.e., savings, checking) and for what purpose it will be used (i.e., vacation fund, retirement).
Give yourself a budget so that you can determine how much money is being spent on different aspects of life and why it’s going into these areas (i.e., rent/groceries). You can find a helpful budgeting worksheet here.