Debt and unemployment are just a few of the financial consequences brought upon by the coronavirus pandemic. Whether you’re new to the workforce or planning for retirement, there are ways to set yourself up for long term financial success, despite the current uncertainties. Jared Finkelstein, a wealth management expert, shares four tips to get your finances back on track, at any age.
In your twenties: Clean up debt
Finkelstein says that people in their twenties should focus primarily on cleaning up debt. Many struggle with debt and student loans for years and could benefit from companies such as Commonbond, which will help people refinance their loans at lower rates and review their debt-load.
In your thirties: Create a systematic savings plan
For people in their thirties, Finkelstein provides a simple formula for saving money: spend less than you make. To ensure that you’re prioritizing saving, Finkelstein urges people to create a systematic savings plan. If you’re not sure where to start, hire a financial “trainer.”
“What a financial trainer will do, just like a personal trainer in the gym, will make sure that you stick to your plan and stick to your regimen,” says Finkelstein.
In your forties: Create a written action plan
It’s never too late to make changes. For those in their forties, having a written action plan is crucial. Finkelstein encourages people to ask themselves how much they’re making, spending and saving, as well as what their goals are and what retirement will look like.
“Next thing you know, you will have a plan in place with a roadwork and a framework on how to get there,” he says.
In your fifties and beyond: Shift focus to long-lasting income
Once you’ve reached your fifties, Finkelstein believes the primary focus should be how to turn assets, that were focused on accumulation, into income vehicles. Differentiating between stable and volatile income vehicles is key.
“The stock market, which has been wonderful for your accumulation, is very, very volatile when it comes to distribution,” he says. Instead, he suggests accessing markets that are more stable, such as bonds.
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