Without a clear road map to manage your finances, you can easily get lost in a maze of changing tax laws and an uncertain economy. To stay on the right path, make financial plans for the future with these tips in mind:
- Invest wisely. If you have extra money after paying the bills and funding tax-deferred retirement plans to the max (and perhaps socking away a few dollars for your kids’ college tuition), think about investing what’s left. In the long run, you’re likely to find compounding returns far more rewarding.
- Assess your financial relationship. As your financial relationship with your spouse matures, consider combining more of your assets, opening investment accounts for retirement purposes or your kids’ college costs, and diversifying your investment strategies. Don’t merge everything; keep some accounts separate to maintain some financial autonomy.
- Protect yourself. Total job security doesn’t exist these days, so financial advisors recommend an emergency fund. Start a “just in case” fund by calculating your fixed expenses, estimating how long you might be unemployed if you lose your job, and making regular deposits into a dedicated emergency account.