Planning for the future is an important part of life for any individual. Early financial preparation in particular is important to ensure that retirement is both feasible and comfortable. However, with all of the advice and information out in the world and on the internet it can be difficult to know where to start. There is the option of consulting a wealth management company like AOG Wealth Management, run by CEO Fred Baerenz, but for those just starting out in life without a great deal of economic savvy who aren’t ready for that step, here are some basic tips.
1. Begin Building an Emergency Fund
An emergency fund is a buffer between you and disaster. Unexpected expenses — medical emergencies, car accidents, sudden job loss and others — can devastate you financially without one. It is usually recommended that this security reserve contain enough to get you through three to six months without income coming in, though Forbes says that it is okay to see this as more of a long term goal and start with a smaller, more attainable amount. A savings account is often suggested as a good location to store this contingency money.
2. Invest in a Retirement Fund
Many employers offer an investment fund like a 401K as part of a benefits package. Matching their regular contributions to the fund and adding additional money on your own helps build it up. If your company/boss does not include a retirement fund as one of your work advantages, you should start one.
3. Start Building a Diverse Investment Portfolio
Other investments besides a retirement fund can also help set you up for a comfy retirement. It is best to begin investing young as it gives more time for your capital to grow. It is also best to diversify your investments so that if one of them fails you do not lose everything you have put in.
These are only a few tips out of the many out there. However, they are key parts of any financial plan.