Guidance for aspiring adults without children.
Many people see their salaries increase between the ages of 30 and 40 as they become settled into their chosen career and advance within it. This is a great time to confirm that you are maximizing your income to its fullest potential. There may be extra funding set aside for vacations and hobbies. It is often difficult to find the correct balance between spending and saving. It is important to remember that this stage in your life is the one that is most likely to directly impact your ability to retire and the standard of living you will be able to maintain after doing so. HHSB can help you set your goals and aspirations.
Your financial habits over the past 7 to 10 years, including the amount of credit you have, the length of time you have had it and whether your bills were paid on time is the information encompassed in your credit report. Equifax, TransUnion and Experian are the three credit reporting agencies that preserve these reports and sell them to lenders to assist them in making decisions about loan qualifications. The credit report that is purchased by the lender also includes your credit score that can range between 309 and 844, which helps the lender decide whether to extend credit to you and what interest rate to charge you. Typically, as your credit score increases, the rate you pay to borrow money decreases.
All consumers are entitled to receive a free credit report from all three credit reporting agencies once every 12 months. The only agency endorsed by the Federal Trade Commission to provide the free reports is AnnualCreditReport.com: www.annualcreditreport.com.
- Calculate how much you will need to save
Basic tips for saving for retirement
- Contribute to your employer’s defined contribution plan if you have one available.
- Put money into an individual retirement account (IRA). Determine whether a Roth or Traditional IRA is the best investment for your financial situation. You can set up funding for this type of investment to be automatically and conveniently transferred from your existing accounts.
- Consult a financial advisor such as our financial professional. There is never a bad time to ask questions AND there are no questions that are bad to ask. Any of our staff will be able to get answers for your questions about retirement.
TIPS FOR EFFECTIVE FINANCIAL MANAGEMENT
- Be sure to maintain your established emergency fund. It is easy to become comfortable in daily life and forget to prepare yourself for unplanned emergencies or possible income loss. This can severely impact your future if you are not prepared.
- Avoid the urge to cut back on saving to meet higher living standards. You do not need to live with the bare minimum, but you should live a well-balanced, budgeted life style.
- Evaluate your budget often to “trim the fat”. If you notice you are overspending in an area, be sure to correct the situation as quickly as possible.