Six Steps to a Successful Financial Future
A good salary does not guarantee success in personal finances.
|1||Pay yourself. Put a specific amount aside for monthly savings.|
|2||Reduce the cost of credit cards. Pay your card’s monthly balance in full to avoid finance charges. If you need to make partial payments and keep a balance, look for the card offering the lowest interest rates.|
|3||Diversify your investments. It is a good idea to distribute your risk through various investments, such as mutual funds, bonds, indexes, stocks and real estate. In addition, you should have a combination of traditional instruments, such as annuities or comprehensive life insurance to offset any risks associated with investments.|
|4||Create and maintain a succession plan. A StateTrust Life & Annuities advisor will help you design a plan to protect your assets in the future. Prepare your will and revise it periodically with your attorney. Have documents ready, such as a power of attorney, and a letter of wishes in case of suffering an illness that would render you physically or mentally incapacitated. Set up a trust fund to preserve your assets.|
|5||Review the scope of your insurance policies. Make sure your policies are consistent with your family’s future income needs.|
|6||Establish long-term financial goals. Make a projection of your future needs. Establish 1-3 and 10-year goals. Evaluate these goals periodically and make any relevant adjustments.|