Retaining IncomeMay 19, 2013 - 1 minute read
Earning income is not as difficult as retaining it. Increased earnings are usually allocated to larger house payments, more expensive automobiles and an increased standard of living. So instead of the additional income providing savings for such items as the next car, additional down payment on a home, educational expenses and retirement it is used to match a new level of spending. With each subsequent increase the standard of living rises and at ”retirement age” one looks about and finds very little wealth was accumulated.
Most of us (85%), despite our level of income do not plan so to get ahead in the financial area of life. Subconsciously perhaps we assume social security will be adequate or our employer’s retirement plan will provide what we need. The challenge of foregoing the present in order to a enjoy a future benefit is difficult if not impossible without a financial plan. Then of course sticking with the plan despite what you perceive others are doing is the long term challenge.
Sound financial planning with a professional adviser who is not selling a particular product besides advice can be a significant step towards financial security. Decide what your financial objectives need to be . Establish a plan that funds those objectives. That plan will determine how your resources will be spent and saved. No one can hit an invisible target. Create a visible financial target and begin to build stable financial foundation.