Qwoter
Custom Search
RSS Feed 

Financial Priorities

Setting financial goals can be very difficult and challenging, especially if you are not really sure which one to prioritize and accomplish first. The following to-do list is a general order of tasks which must be prioritized in order to achieve your financial goals. This list depends on the status of a person, but this generally applies to most of us, if not all.

Although the list does not really include all of the things that must be done, these tasks are among of the important things to do first, and they will serve as a guide for those people who do not know how to start and set their own financial priorities.

Get rid of high interest debts (those that are 6% and above), like the credit card balances.

Debts are generally part of our lives. But trying to eliminate those which requires you to pay high interest rates, such as credit card balances, is a very important task that must be accomplished and prioritized among others. Paying interest rates, especially high ones, are unnecessary expenses that must be removed from our finances as soon as possible.

Make sure to save for emergency funds.

We cannot avoid certain unwanted circumstances which will require us to spend money which are not planned, such as medical and hospital bills, funeral expenses of a relative, and the like.

Having an “emergency fund” to shoulder these unplanned expenses is really necessary, so as to avoid having to borrow money from any one or any financial institution that will require you to pay interest.

Get life insurance and a will, if you have dependents.

Plan your life — and be prepared for your death as well. Getting a life insurance for your dependents is a wise thing to do. You would not want them to suffer when you’re gone — especially if these dependents are too young to earn money for themselves. Prepare a will as well, and other estate-planning documents. The sooner that you can discuss this with your lawyer, the better. But if you do not have dependents, then you can move this task to the bottom of your priorities.

Develop a plan to improve your human capital.

Invest your money to good investment plans which will grow your money over time. Talk to a financial expert about this and get some investment advice on which plan is best for you.

Get a retirement account, such as Individual Retirement Account.

There are plenty of best IRA companies to choose from, which will make a best IRA provider. For most people, a Roth IRA is preferred. Learn how to open a Roth IRA from a financial adviser, and begin making contributions to such and let your money enjoy tax-free growth.

Develop an expense plan depending on your cash flow.

There are software and online services such as Mint and Quicken which will help you develop a spending plan. Learn how to minimize expenses by cutting off unnecessary expenditures.

If you are still employed, maximize your employer benefits. If you are retired, take advantage of the different government benefits.

Determine your financial goals.

Plan you expenses, and know how much you need to save. Open high interest savings accounts with the financial institutions that have good reputation and offers the best rates and lowest fees.

Create an investment policy statement.

Diversify your funds and make better investment portfolios. Learn the art of transforming debt into wealth through investing with those that will give you better opportunities of gaining profits.

Get insurance with appropriate coverage.

Learn how to analyze insurance policies and make sure that the coverage is appropriate for your status and needs. Get the one which offers the best price and better rates as well.

Financial Priorities, 2.5 out of 5 based on 1 rating

VN:F [1.9.22_1171]
Rating: 2.5/5 (1 vote cast)
Share

0 comments

  • Likes
    411

  • Followers
    70

It’s Not Too Late! - You can still open your IRA today and receive taxable deductions for 2015. Learn How