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FOR IMMEDIATE RELEASE
(Kansas City, Mo.) - Retirement may still be a few years, or even decades away, but
there’s no time like the present to start planning for the future. However, not
enough people are doing it.
According to a recent GoodLife™ survey by Stowers Innovations, Inc., less than 20
percent of adults over the age of 18 have a definite plan for retirement at a
specific age. This Independence Day, start the path toward personal financial independence.
“The only person you can count on for your financial security is you,” Sam Goller,
spokesperson for Achieve Financial Independence Week™ said. “To achieve financial
independence you must create a plan to ensure your own secure future and proactively
managing it.”
After the barbeque ends and the fireworks fade, follow this six-month plan to begin the
path toward financial freedom.
Month One — Make a commitment and determine your priorities. The first step
toward financial independence is making a commitment. Sign your own Declaration of
Personal Financial Independence as a reminder of your personal pact. You can find a
Declaration of Personal Financial Independence at
www.afiweek.com/si.asp.
Once you’ve committed, establish your priorities. Determine what is truly important
to you and how to live your life in a way that allows you to attain these things.
Financial priorities can encompass many things including education, family unity or
fulfilling basic needs like transportation. Once you set your priorities, form a
plan to meet them. For example, you may start saving for college, a family
vacation or a car.
Month Two — Eliminate debt and establish a budget. Debt is an American
epidemic. More than 70 percent of surveyed adults reported living with debt.
Thirty-five percent had over $8,000 in debt. Analyze your current payments and find
ways to pay down your debt as quickly as possible. Options range from borrowing
money at a low interest rate to pay off high interest credit card debt, to
stopping all other investments and using that money to bring your unpaid balance
to zero.
After you establish a plan for eliminating debt, create a budget and be determined
to live within your means. This can help you achieve your goals and stay debt free
in the future.
Month Three — Audit your finances. Take stock of your progress to-date. Each
week, perform an audit on a different area of your finances. Review your spending
pattern and make certain your spending matches your priorities. Re-calculate your
debt to determine the impact of your debt elimination plan. Analyze your budget to
see if it is working for you. Lastly, look at your complete financial picture to
view your financial puzzle as a whole instead of individual pieces.
Month Four — Increase your financial IQ. From children to newlyweds to
retirees, continued financial education is important for people of all ages.
Increase your financial knowledge through a variety of outlets including newspapers,
financial books and seminars. Learning about mutual funds, investment opportunities
and savings plans can diversify your finances and put you in a better financial
position for the future.
Month Five — Start thinking long term.
Now is the time to plan for your financial future by paying yourself first and
setting up an emergency reserve.
The concept of paying yourself first is one of the most effective ways to save
and begin building a foundation for your future financial security. Each month,
before you do anything else, put a set amount of money into a high yield savings
or investment account.
Since life is full of risks and financial pitfalls, build an emergency reserve
to sustain you during hard times. It is advisable to save between three and
six months of living expenses in an easily accessible saving account. The amount
of your reserve will depend on the flexibility of your budget and your comfort
zone. Remember your emergency reserve is not intended to cover all possible
risks. For complete protection, take advantage of the many insurance options
available to you.
Month Six — Resolve to stay focused. Congratulations on making it to the
sixth month. Take time to reassess your finances and your complete financial
picture. Determine what has worked well during the previous five months and
what you can do better. Then reconfigure your financial plans to take these
things into account.
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About Stowers Innovations
Stowers Innovations, Inc. is a company that helps people find ways to improve
their financial position and find more meaning in their lives. Their mission
is to provide information that makes people aware of how they can live a
meaningful life through an understanding of their values, personal relationships,
finances, good physical health and mental well being. For more information,
visit www.stowers-innovations.com.
Note to Editors: To request review copies of books from the
Yes, You Can... series, contact Tricia Jaworski at 913-660-9659 or
tjaworski@morningstarcomm.com.
More information can also be found at www.afiweek.com/NewsCenter/declaration.asp.
Get a PDF version of this page here.
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