| The traditional "American Dream" that average | | | | insurance, do not have enough life insurance, |
| citizens can better their lives, not worry | | | | or do not have the right kind of life |
| about paying their monthly bills, give their | | | | insurance. You need to make sure that the |
| children opportunities better than their own, | | | | amount of coverage you have gives you and |
| and still be able to save towards a | | | | your family the protection you need. |
| comfortable retirement has become harder to | | | | |
| achieve and maintain. For many Americans this | | | | Household budget - Creating a household |
| dream has been replaced by rising costs, | | | | budget is just deciding to spend your money |
| debt, declining wages, and ultimately a | | | | on purpose before you actually spend it. For |
| downsizing of their dreams. Yet, while some | | | | some, this may be as simple as deciding to |
| Americans seem to be struggling financially, | | | | spend 60% of their income on fixed expenses |
| others are getting ahead. Why? For many, the | | | | leaving 40% for saving and having fun. For |
| answer to this question lies in having a plan | | | | others, a more comprehensive budget is needed |
| - a financial plan customized to a family's | | | | to address their spending habits. The bottom |
| own unique dreams and goals. | | | | line is that you need some type of budget to |
| | | | help you save towards your dreams and goals. |
| While some financial planners deal mainly | | | | |
| with investments, a good financial plan often | | | | Saving for financial goals - A family's |
| needs to go beyond these strategies. The | | | | financial goals can include anything from |
| needs and goals of every family are unique. | | | | buying a new home to going on a family |
| Therefore, a financial plan should be | | | | vacation. Whatever these goals are, the best |
| customized to a family's individual needs and | | | | way to achieve them is to start saving before |
| can include some or all of the following | | | | you need the money. I have seen too many |
| areas: | | | | people who have gone into debt, or at best |
| | | | overextended themselves financially, to |
| Retirement - Everyone I know has great dreams | | | | achieve their goals because they did not plan |
| for what they want to do after they retire, | | | | ahead and start saving now. |
| but more and more retirees are finding | | | | |
| themselves rejoining the workforce in order | | | | Debt management - Imagine what you life would |
| to make ends meet. Starting a retirement plan | | | | be like without any credit card debt. This |
| is most effective when started early in life, | | | | can be a reality, but for many people I know, |
| but this is the time people are least | | | | being in debt has become a way of life. The |
| interested. They key to saving for your | | | | average household debt and personal |
| future is to start as soon as possible. Even | | | | bankruptcies has been steadily increasing. |
| if you are currently saving for retirement, | | | | You need to have a plan to aggressively get |
| get a retirement check-up. You want to make | | | | rid of your credit card debt. Only then will |
| sure you have an adequate plan while you | | | | you be free to start saving towards other |
| still have time to change it if necessary. | | | | important dreams and goals. |
| | | | |
| College Education - I was shocked when I | | | | There are several things to consider when |
| heard that by the time my son and daughter go | | | | developing a financial plan. While many parts |
| to college, 4 years at a state school could | | | | of a financial plan you may decide to do |
| cost as much as $200,000 and a private school | | | | yourself, eventually you will need a |
| even more! You need to start saving when you | | | | financial advisor to help you implement the |
| children are young. Even a small amount saved | | | | plan and take care of all the details. Make |
| consistently over time can make a big | | | | sure that you are comfortable with the person |
| difference. There are two savings vehicles | | | | you choose. For most people, their dreams, |
| you can take advantage of that allow you | | | | goals, and financial situation will change. |
| possible tax benefits - a 529 college savings | | | | You need to make sure that you can update |
| plan and a Coverdell Education Savings | | | | your plan as often as necessary to account |
| Account. | | | | for these life changes and make sure your |
| | | | plan is working. Whatever you decide, the |
| Life Insurance - Life insurance is almost a | | | | important thing to remember is that a good |
| necessity - especially if you have children. | | | | financial plan will help you achieve your |
| Knowing that your family will be taken care | | | | dreams and goals. The sooner you start, the |
| of is definitely a source of great comfort. I | | | | sooner you can start turning your dreams into |
| know a lot of people who do not have life | | | | realities. |