Top 5 Financial Goals Everyone Should Have

3 years ago

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Danny Ippolito shares a few simple, but impactful goals everyone can and should start working toward now.

1. SPEND LESS THAN WHAT YOU EARN 

Creating and adhering to a budget is perhaps the most basic of all good financial rules. Learning to live on less than you earn – no matter what –will help ensure that you always have income left over for savings, investments, and for paying off debt. There are many resources available to learn how to manage your finances, including the help of a competent financial advisor.

2. ERADICATE DEBT

For the purpose of this list, let’s ignore the prioritization between “good debt” and “bad debt”. All debt is bad debt and needs to be paid off. Simply put, being debt free is vital to truly achieving financial freedom. It will leave you with more money for saving and investing and even for spending.

3. MAINTAIN AN ADEQUATE EMERGENCY FUND

It goes without saying that we will all face emergencies throughout our lives. Maintaining an adequate emergency fund can help prevent those emergencies from completely derailing our long-term plans. In addition, an emergency fund will help reduce stress related to ongoing income and expenses or volatile swings in the stock market since you know that you have a cash reserve to fall back on if necessary. It will also establish confidence in your ability to save. Simply put – if you can save money for an emergency fund, then you can save money for your other financial goals.

 4. PLAN FOR EARLY RETIREMENT

Planning for early retirement has its benefits, whether or not you actually plan to retire early. For instance, saving for early retirement will force you to front load your investment portfolio, allowing you to maximize compounding and not have to work as hard at saving later in life. Another benefit is that you will be ready to retire if poor health or family circumstances force you into early retirement. Even if you do not need nor want to fully retire early, you may wish to downshift and not work so hard. Having a solid retirement plan is paramount. If you aren’t sure where to begin, consider hiring a financial advisor to set a plan in motion. 

5. LEAVE YOUR FINANCES AND ESTATE IN ORDER UPON YOUR DEATH

Having an estate plan is not only important to preserving your legacy and making adequate provisions for your loved ones who are dependent upon your financial resources, but also to making sure you don’t leave them with a financial or legal mess. Consult financial and legal professionals to implement an estate plan. An adequate estate plan can serve to protect your assets in life and after your death. It can also minimize the impact of estate taxes if your estate is large enough to be subject to them. Make sure that you have adequate insurance, particularly life insurance. As mentioned in #2 above, make sure that all your debts are paid if possible and that any large or unusual debt can be paid off by a life insurance policy upon your death.

-Danny  Ippolito, Law Group associate and  Cabana, LLC financial advisor

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Disclaimers

Cabana LLC (dba “Cabana Asset Management” and “Cabana Retirement Solutions”), is an SEC registered investment adviser with offices in Arkansas, Texas and Colorado. Cabana only transacts business in states where it is properly registered or is exempted from registration requirements. Registration as an investment adviser is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability. Additional information regarding Cabana, including its fees, can be found in Cabana’s Form ADV, Part 2. A copy of which is available upon request or online at https://www.adviserinfo.sec.gov/.

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All written content on www.thecabanagroup.com website (the "Website") is for informational purposes only. The material presented is believed to be from reliable sources and no representations are made by Cabana, LLC, Cabana Law Group, or Cabana Financial, LLC (collectively, “Cabana”) or its affiliates as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with a financial advisor, accountant or legal counsel prior to implementation. No party, including but not limited to, Cabana and its affiliates, assumes liability for any loss or damage resulting from errors or omissions or reliance on or use of this material.

The views and opinions expressed are those of the authors do not necessarily reflect the official policy or position of Cabana or its affiliates. Any content provided by our bloggers or authors are of their opinion, and are not intended to malign any religion, ethnic group, club, organization, company, individual or anyone or anything.

Information presented is believed to be current. It should not be viewed as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a financial advisor before implementing any strategies discussed. Content should not be viewed as an offer to buy or sell any of the securities mentioned or as legal or tax advice. You should always consult an attorney or tax professional regarding your specific legal or tax situation.

Viewers or recipients of the information herein that do not agree with the term and conditions of use, should not utilize this website or any information contained herein. Decisions based on information contained herein are the sole responsibility of the person viewing the website. In exchange for utilizing the information on this website, the visitor agrees to indemnify and hold Cabana, its officers, directors, employees, affiliates, agents, licensors and suppliers harmless against any and all claims, losses, liability, costs and expenses (including but not limited to attorneys' fees) arising from the use of this website, violation of these terms or from any decisions that the viewer makes based on such information.