{"id":9572,"date":"2023-08-07T01:17:50","date_gmt":"2023-08-07T01:17:50","guid":{"rendered":"https:\/\/isafespend.com\/personal-finance\/savings\/moneynav-bootcamp-aligning-your-budget-goals-part-three\/"},"modified":"2023-08-07T01:18:03","modified_gmt":"2023-08-07T01:18:03","slug":"moneynav-bootcamp-aligning-your-budget-goals-part-three","status":"publish","type":"post","link":"https:\/\/isafespend.com\/?p=9572","title":{"rendered":"MoneyNav Bootcamp: Aligning your Budget & Goals\u00a0[Part Three]"},"content":{"rendered":"
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Did you know that April is\u00a0National Financial Literacy Month? Its purpose is to bring awareness<\/em> to the importance of financial literacy and educate people on the significance of establishing and maintaining healthy financial habits. As financial advisors, we wholeheartedly support taking these steps, and what better time of year than FLM to start working out your finances?<\/em>\u00a0\u00a0Taking the leap towards financial freedom can be daunting, but it doesn’t have to be difficult. Over the next few weeks, we will break down the Financial Literacy Month\u2019s (FLM) “Thirty Steps to Financial Wellness” into a four-part series we’re calling\u00a0MoneyNav Bootcamp<\/strong>. These posts will outline\u00a0basic steps to take in order to begin revamping your financial life, managing challenges along the way, and staying motivated. Let\u2019s get started!<\/em>\u00a0<\/span><\/p>\n

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Quick Recap<\/strong><\/span><\/p>\n

Time flies when you’re\u00a0working hard, and we have definitely been flexing our financial muscles, sailing right into week three! Despite your amazing progress, there are still challenges to face. Don\u2019t forget to reflect on what you have accomplished so far and get yourself in the right mindset to focus on this week\u2019s set of tasks.<\/span><\/p>\n

Last\u00a0week<\/span>\u00a0we defined your baseline financial picture, reviewed your debt test,\u00a0and determined SMART\u00a0financial\u00a0goals for your future. These steps are\u00a0paramount to successfully completing week three, so let\u2019s get those financial\u00a0endorphins pumping!<\/span><\/p>\n

Week #3 of MoneyNav Bootcamp: Keeping\u00a0your budget and goals in sync<\/span><\/strong><\/span><\/p>\n

We are more than halfway through Financial Literacy Month, and this week is about zeroing in on your personal budget to ensure that it supports your goals, commitments, and financial future.<\/span><\/p>\n

Step #15 \u2013\u00a0<\/em><\/strong>Secure your financial future<\/em>:<\/em>\u00a0What comes to mind when you think of retirement? Do you think about how much time you will have to perfect your golf swing? The business you have always wanted to start? Or how about all of the places around the world you still have yet to experience? Whatever you imagine your ideal retirement will look like, you should ask yourself: have I\u00a0successfully prepared?<\/span><\/p>\n

Consider all of your available resources.\u00a0For example, do you participate in your company\u2019s retirement plan? Not only does this make saving for your future automatic, but if applicable, you can take advantage of matching contributions. Simply put, an employer will sometimes offer a benefit wherein they \u201cmatch\u201d your own retirement plan contribution. Formulas can vary, but typically you\u2019ll need to save at least X percentage of your paycheck, of which your employer will then match Y percent. Essentially, if your employer does offer a match and you\u2019re not using it, you are leaving free money on the table.<\/span><\/p>\n

Two other important ideas you should keep in mind: your specific long-term saving strategy,\u00a0and your\u00a0tolerance for risk when it comes to investing. Take an active role in managing your financial future so you can be prepared for the ups and down’s of the market, and keep your investments on track. However, no one expects\u00a0you to know everything, so reach out to your HR professional or a trusted financial planner with any complex questions you may have.<\/span><\/p>\n

If you need more assistance preparing yourself for retirement, take advantage of our\u00a0retirement checklist. It goes over the different aspects you should consider while\u00a0planning for retirement, such as your lifestyle, finances, estate planning, healthcare, and how your investments today may\u00a0impact your retirement in the future. While you\u00a0may be tempted to withdraw your funds early, but don\u2019t touch them! Depending on your retirement account, you may have to pay taxes on top of a hefty penalty fee<\/span>, so we strongly urge you against pulling from your investments early.<\/span><\/p>\n

Step #16 \u2013\u00a0<\/em><\/strong>Make a<\/em>\u00a0<\/em>commitment:<\/em>\u00a0 Commitment is a recurring theme throughout this\u00a0challenge, and for good reason. No matter how much you accomplish, there will be days when you feel like giving up. However, remember your commitment to achieving financial stability. Besides using your financial list of priorities to help you save responsibly, you can also let your friends and family know how committed you are to your goals, and recruit their help with staying on track. Print this \u201cI Am Committed\u201d certificate that states the item you are saving for and how much you are going to commit to your saving goal. This form of accountability creates a behavioral driver for us to work hard and complete our commitment.<\/span><\/p>\n

Step #17 \u2013 <\/em><\/strong><\/span>Save for your goals:<\/em>\u00a0Last week we focused on prioritizing, and setting SMART short-, mid-, and long-term goals, but you\u2019re probably wondering how you\u2019re going to actually find the money to put towards all of this. For example, if your goal is to have $5,000 saved for a vacation next year, you\u2019ll have to figure out how much per month you\u2019ll need to save to reach that goal. So, how do you go about doing that?<\/span><\/p>\n