Looking Ahead Financially

prepare for your finacial future

The Coronavirus pandemic is putting a serious strain on all Americans.  Many businesses have had to close and lay off staff.  That ‘worst-case scenario’ we all hoped would never happen is here.  And since so few of us are well prepared for even a small emergency, let alone a disaster, many families are feeling the pinch.

If we’ve learned anything from the past, it’s that these pandemics don’t last forever. It will eventually fizzle out and life will return to normal. When that happens, you need to be prepared. With the right preparation, you can create a stable financial future for you and your family.

Improve Your Financial Literacy

In the U.S., only 37% of individuals can answer four or five questions on a basic five-question financial literacy quiz correctly. Take the test here and see how you score.  Then improve your knowledge and understanding so you can get 100 percent on the test.

Why is this important? Understanding these concepts gives you the knowledge and skills to manage money effectively. Without it, your financial decisions and the actions you take—or don’t take—lack a solid foundation for success. [2]

Examine Your Financial Situation

Now that you have a better understanding of the important financial concepts, take a long hard look at your financial situation.

Do you have a budget?  Do you have a short- and long-term plan that will get you to financial freedom and retirement? Have you thought about college for your kids? What if another emergency pops up – will you be able to survive it comfortably?

Strategic Planning

The biggest factor in not having an emergency fund or “cushion” that will get you through unforeseen difficulties is the lack of strategic preparation. The first step is to define what financial freedom means for you, so you have a goal to aim for. Next, lay out the plan that will get you there.

If necessary, talk to a financial advisor and get help, so you know exactly what you need to do and what accounts or investments are best suited to your goals and purposes. Then monitor your progress every month and stay on track.

Now is the time to prepare for the future.  While you are stuck at home, get your finances in order so that you can rebuild quickly and create a stable financial future, no matter what life throws at you.

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