I Feel So Behind Financially! (How Do I Catch Up?)
Apr 15, 2024
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Learn how to catch up financially by setting clear goals, saving a percentage of income, and starting to save and invest early. Explore advice on managing investments, asset allocation for young couples, financial choices during graduate studies, and differences between wills and trusts in estate planning.
Assess your current financial standing and set clear goals to bridge any gaps and improve your situation.
Start investing early, save a percentage of income, and use tools like target retirement index funds for long-term benefits.
Deep dives
Benefits of Catching Up Financially
Catching up financially is possible regardless of age. Even if you feel behind, taking steps like assessing your current financial status and setting clear financial goals can help you make meaningful progress. By creating a net worth statement and determining your financial goals, you can plan and implement strategies to bridge any gaps and improve your financial situation.
Starting Investing Early
For individuals in their 20s or even early 30s, starting to invest early can have significant long-term benefits. Saving a percentage of your income, such as 25% or more, can lead to substantial growth over time. By using tools like target retirement index funds, young individuals can create a diversified investment strategy that adjusts based on their targeted retirement timeline, ensuring steady progress towards financial goals.
Balancing Saving and Investing During Life Transitions
During transitional phases such as nursing school or when facing a temporary financial strain, it may be necessary to prioritize savings over investing. While pausing investments temporarily to build up cash reserves or cover expenses can be practical, maintaining a mindset of discipline and monitoring your financial health is crucial. Small ongoing investments, even during lean times, can help cultivate a savings habit and prepare for future wealth building opportunities.
Understanding Wills and Trusts in Estate Planning
Wills and trusts serve distinct purposes in estate planning. A will outlines your end-of-life wishes regarding your assets and beneficiaries, while a trust functions as a structured entity managed according to specific guidelines even during your lifetime. While wills address your testamentary desires, trusts offer continuous management and oversight of assets. Balancing both wills and trusts in your estate plan ensures comprehensive coverage of your financial and personal wishes.
"I found you guys recently and am realizing that I need to make some changes. I'm 37 and feel so behind, especially after listening to last Friday's episode (How Real People Become Millionaires). Can I catch up? Is there anything specific I should be doing to help get myself back on track?"
We'll walk you through that question and more in today's Q&A episode!
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.
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