When you read about money matters, you may see the phrase, “getting your financial house in order.” What exactly does that mean?
To some, when your financial “house is in order,” it means it is built on a solid foundation. It means that you have the “pillars” in place that are designed to support your long-term financial well-being.
#1: A financial professional. Working with a financial professional can play a role in many financial strategies. You have many different choices when deciding who may work best with you, but working with a fiduciary will ensure that your best interests are put first. It’s also important to know your specific needs. Have questions ready to ask the financial professional, such as “how often do you meet with clients?” or “what clients do you specialize in?” to see if it seems like a good fit.
#2: An emergency fund. You know that label you see on fire extinguisher boxes – “break glass in case of emergency?” Only in a financial emergency should you “break into” your emergency account. What is a financial emergency? Everyone’s definition varies, but it can range from a broken water heater to major car repairs to unemployment help.
#3: A workplace retirement strategy. At some point, you may want to consider when is the right time to start saving for retirement. Workplace retirement plans can offer you a convenient way to get started, if one is available and provide a consistent vehicle to save for retirement.
#4: An eye on Insurance. Like the other decisions you’ll need to make while building your financial foundation, choosing the appropriate insurance program is going to be influenced by your own individual life circumstances. For example, if you’re supporting a family, you may want to look into an insurance program that is designed to protect you in the event that something happens to you or prevents you from working for a period of time.
#5: Estate Strategy. It’s never too early to start thinking about your legacy. For some, this can mean providing some financial support to your loved ones. For others, it might mean creating a program that supports charities and organizations. Whatever your aspirations, it’s important to ensure that your assets transition smoothly in accordance with your wishes.
At Emerj360, we take a 360 degree look at your financial situation to help you set your financial foundation and plan for the future. Contact us if you’d like to set up a conversation.
