Working toward financial health may be more important than saving for retirement for Generation X and Millennials. They are many years from retirement and face a host of other financial concerns including student loans, growing families, mortgages, and amassing emergency funds. A financial wellness approach, as outlined here, is a path toward financial freedom.
The first step in achieving financial freedom is creating a personal mission statement that identifies the things that are most important to you and that you most want to do. From there, a personal definition of what financial freedom means to you will become clear.
Twice each year, review your financial status by using planning calculators, looking at portfolio performance, and taking note of your savings, debt, and net worth.
Increase your financial confidence by increasing your knowledge. Financial education programs are available to help you make effective decisions.
Make your financial behavior align with your personal mission statement and goals. Automate as much of your financial behavior as possible to keep yourself on track. Automatic contributions to retirement accounts, savings deposits, and debt payments help prevent missed savings and debt reduction opportunities.
You are in control of your finances. Making decisions to improve your financial health now allows you more financial freedom in the short term and later at retirement.
How important should retirement be to you? This article might have some answers. #HealthStatus
- 1Only 60 percent of workers are confident about a comfortable retirement
- 2Be aware of your financial wellness by tracking your financial status at least every 6 months.
- 3Focus your financial behaviors to keep in line and match your life’s financial goals.