National Financial Awareness Day, celebrated each year on August 14 since 2019, isn’t just about knowing your numbers; it’s about setting a course for your financial future. While your immediate needs might take most of your daily focus, it’s important to keep an eye on the road ahead.
The remainder of 2024 presents an opportunity to assess your current financial health, refocus, realign, and set goals. Whether you dream of early retirement, a new home, or simply a more secure financial future, these seven goals can empower your journey and help you succeed through the rest of 2024 and beyond.
1. Update (or Create) Your Budget
A budget outlines where your money comes from and goes, helping you control your finances and live within your means. You can create a monthly budget in many ways, from spreadsheets to apps. The key is finding and sticking with the method that works for you.
If you don’t have a budget, now is the perfect time to create one to help build your long-term goals. If you do have one, use this time to review and adjust it to reflect your current income and expenses.
2. Build an Emergency Fund
An emergency fund is a financial safety net that can help you weather unexpected events like a job loss, medical emergency, or major car repair. A good rule of thumb is to save three to six months of living expenses in an easily accessible account, such as a high-yield savings account.
If you don’t have an emergency fund or it’s running low, consider building one. Even small, consistent contributions can add up over time. Setting up automatic transfers from your checking account to your savings account each month is one easy way to start.
3. Tackle High-Interest Debt
High-interest debt, such as credit card balances or personal loans, can be a major financial drain—especially once you retire. Interest can quickly add up, making it difficult to get ahead. Prioritize paying down this debt.
You can take different approaches to tackling debt, such as paying off your smallest debts first or paying off the debts with the highest interest rates. No matter which strategy you choose, consistency is key. Try paying more than the minimum amount. Also, cutting back on expenses and increasing your income can free up more money for reducing your debt.
4. Increase Retirement Savings
Retirement may seem far off, but it’s never too soon to start saving. The sooner you begin, the more time your money has to grow through the power of compound interest. If you haven’t already started saving for retirement, National Financial Awareness Day is a great time to start.
You may have several retirement savings options, including:
- 401(k) plans are employer-sponsored retirement plans you can contribute to from your paycheck.
- Individual retirement accounts (IRAs) are personal accounts that offer tax advantages.
- You can also invest in stocks, bonds, mutual funds, and other assets to help grow your retirement savings.
5. Review and Optimize Your Investments
Assess your investment portfolio. Are your investments aligned with your risk tolerance and long-term goals? Are they performing as expected?
Look at your asset allocation—your mix of investments—to determine if it’s still appropriate for your financial situation and age, especially as you approach retirement. If you’re unsure how to optimize your investments, consider seeking professional advice from a financial advisor.
6. Plan for Future Expenses
Beyond daily living costs and retirement, you may have other goals that require substantial financial planning, such as saving for a child’s education, buying a home, or starting a business. National Financial Awareness Day is a good reminder to plan for these expenses early.
If you have children, consider opening a 529 savings plan. These accounts offer tax advantages and can help you save funds to cover tuition, fees, and other education-related expenses. If you hope to buy a home, saving for a down payment can help reduce your monthly mortgage payments and save in interest over the life of the loan.
7. Protect Your Finances
While your main focus may be on growing wealth, protecting it is just as important. Unexpected events like illness, disability, or natural disasters can derail any carefully crafted financial plan. So, consider having insurance for an added layer of protection.
Review your existing insurance policies, such as life insurance, disability insurance, and long-term care insurance, and determine whether you need additional protection. The right insurance coverage can help protect your financial future from unforeseen events.
Your Financial Future Starts Today
National Financial Awareness Day is a reminder that preparing for your financial future is an ongoing journey. By setting clear goals, you can build a solid foundation for the long term. This can help you keep your finances top of mind year-round as you work toward the retirement you’ve always imagined.
Interested in getting personalized insights for your retirement and beyond? Contact a Bankers Life representative for financial guidance and support.
Insurers and their representatives are not permitted by law to offer tax or legal advice. The general and educational information here supports the sales, marketing or service of insurance policies. Based upon individuals’ particular circumstances and objectives, they should seek specific advice from their own qualified and duly-licensed independent tax or legal advisors.
We’re here for you!
Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.
Bankers Life Securities, Inc., Bankers Life Advisory Services, Inc., and their representatives do not provide legal or tax advice. Each individual should seek specific advice from their own tax or legal advisors.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.
Bankers Life is the marketing brand of various affiliated companies of CNO Financial Group including, Bankers Life and Casualty Company, Bankers Life Securities, Inc., and Bankers Life Advisory Services, Inc. Non-affiliated insurance products are offered through Bankers Life Securities General Agency, Inc., (dba BL General Insurance Agency, Inc., AK, AL, CA, NV, PA).
Securities and variable annuities offered through Bankers Life Securities, Inc. Member, FINRA/SIPC (dba BL Securities Inc., AL, GA, IA, IL, MI, NV, PA). Advisory products and services offered by Bankers Life Advisory Services, Inc. SEC Registered Investment Adviser (dba BL Advisory Services, Inc., AL, GA, IA, MT, NV, PA).
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.
Investments are: Not Guaranteed—Involve Risk—May Lose Value.
