Secure Your Future
At Bridgeway Financial Marketing Services, we want you to enhance your knowledge on money matters by observing the simplest steps.
Steps to Financial Strength
4 Steps to Financial Strength
1: Make Better Decisions With Your Money
Step 1: Make Better Decisions With Your Money
If you are like most people who you have a limited amount of money but lots of bills and unfulfilled dreams. One obvious step to take is to make better decisions with the money that you do have.
Spend More Than You Make
Don’t Spend More Than You Make
1. Make sure your household expenses don’t exceed 33% of your income and your debt payments don’t exceed 30%.
2. Buy only what you need. Ask yourself, “Do I really need it?” before buying.
Manage Your Debt
1. Don’t use your credit cards unless you can pay off the balance every month.
2. Pay your bills on time. Remember that fees and interest can add up quickly.
3. Consolidate debts for lower interest payments if possible. Save the difference or pay down other debts.
an Emergency Fund
Create an Emergency Fund
Set short-term and mid-term funds. Set aside enough money to get through 3-6 months of unemployment or major emergencies. An emergency fund will help you get through tough times without getting into credit card debt.
Short-Term, Mid-Term, and Long-Term Financial Goals
Set Short-Term, Mid-Term, and Long-Term Financial Goals
It would be helpful if you ask yourself the following questions:
1. What do you want to achieve in six months, in a year, and in 10 years from now?
2. What are you willing to do to reach those goals?
2: Protect Your Income and Family
Step 2: Protect Your Income and Family
Always remember the following:
- Protecting your income and your assets are essential for creating a financially stable future.
- When you are younger, you need protection for your income in the unfortunate case of your death or disability. When you are older, you need protection for your retirement and your legacy to your family.
- It’s important to have adequate insurance, especially for life, health, disability, personal liability, and coverage of property.
- All it takes is one major hospitalization or accident to realize the importance of having adequate insurance!
3: Accumulate Assets
Step 3: Accumulate Assets
The middle part of your life or career is often called the “accumulation phase”. This is because you are still establishing yourself financially and are growing and gathering assets rather than spending everything. When accumulating assets, you need to be aware of the concepts of the Rule of 72, Inflation, Taxes, and Market Risk.
4: Preserve Your Legacy
Step 4: Preserve Your Legacy
Protect your hard work and sacrifice by conserving, planning, and transferring wealth during your lifetime. Failing to plan might mean that your wealth ends up in the wrong hands. Pay attention to:
- Adequate Protection (Insurance Coverage)
- Long-Term Care Costs
- Power of Attorney
- Living Wills
- Testamentary Wills
- Forming Trusts or Family Limited Partnerships