The 2016 Olympics have officially kicked off and it should prove to be exciting with USA Basketball, USA Swimming, and many more new events including golf this year. It is always amazing to hear the Olympic stories of gold medal winners and their struggle to make it to the top. Here are your smart money moves on what to do to win the Gold Medal with your financial plan.
- Get rid of debt as quickly as possible - Even though most people are excited about low interest rates today, just because you can borrow money doesn't mean you should borrow money. Consumer debts are the absolute most important to get rid of in your financial plan, and consider trying to pay extra on your long term debt. Going into retirement with no debt will allow you be nimble and flexible with your choices down the road.
- Plan for the unexpected - With companies seemingly doing a reorganization or a rightsizing almost every other year, plan that at some point you might have a break in income or even might take a step backwards. If you are in a sales position, don't count on your income going up each and every year as somewhere your company might change your compensation plan. If you have a good corporate job, make sure you build up enough of a cash reserve in case your company cuts your job or you want to choose to leave on your terms.
- Set parameters with your children - Remember, you might love your kids but they cannot help you with your own retirement (unless your kid is Mark Zuckerberg). Make sure to teach them the value of a dollar and set boundaries on what you will be giving them for college or other ancillary expenses. Your children will often take after the money examples you set for them, so be sure you teach them good money lessons.
- Increase your savings every year - How can you focus on spending less money when you make more money? It's simple. You should just increase your savings each and every year. The easiest way to do this is to have the money come directly out of your paycheck or have an ACH set up to come out of your bank account. If the money sits in your bank account, your desire to spend it will go up the longer it sits in the account.
- Assess your insurance needs daily - Nobody likes to think about doom and gloom, but even Gold Medal winners need to be prepared if they get injured. Thus, reviewing your life, disability, long term care, auto, and home insurance every year is an excellent idea on your pursuit to Gold Medal financial success.
This should be a great Olympic season and the USA is poised to do well in Rio. Use these five steps to earn the Gold Medal in your financial plan.
Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.
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