Making Your Money Work for You

Looking into your future is not as clear as it was for our parent’s generation. With so many economic uncertainties, it is our responsibility to ensure we are looking in the right markets to help secure peace of financial mind for retirement. Also, we should have plans in place to offset costs of our children’s secondary education. By learning these disciplines and putting these practices into place, we can set an example for our children and hope they follow suit. We can no longer rely on employers to provide those lush benefit plans.

In my recent online class skill assessments, I have discovered that personal finances is an area that has lacked focus and is suffering. Even though I have contributed to a 401k plan through my job, I have not taken any other measures to secure my future. In fact, I have lacked the discipline to leave those funds alone. Depleting the very funds that I should be securing for my future.

Americans are not saving enough for their future. Studies have shown a decrease in savings in the last 40 years. Concerns are that Americans are putting too much faith in their 401k plans. Americans have shown an increase in investing in their 401ks. However, that is not leaving enough savings for unexpected circumstances, life’s little emergencies. There has also been an increase against 401k. The problem with loaning against the 401k, is the investor is losing out on valuable accruals. (A.C.S., 2013).

I am fortunate that my company offers a 401k plan. In my 401k, my company matches the first 1% dollar for dollar and then 50 cents on the dollar for the remaining. I currently contribute 6%. I will be increasing my contributions to 10% by end of next year. I have learned in order to live comfortably during my retirement I will need to have $3 million vested in my 401k.

I recently followed the advice of a classmate and looked into utilizing a tool named Mint. It allows me to link all my accounts, credit, checking or savings, and give gives me a clear visual of my financial state. Also, I linked my loans to it. This program has built-in alerts to give you reminders of upcoming payments, any fees incurred and many other tools. I have download the app to my phone. I have instant snapshot of my finances.

In the next couple of weeks, I will be sitting with a financial planner. I will see where I can align my monies to better work for me. I have a daughter graduating June. I have all the expenses associated with senior year activities a year earlier than expected. Also, there is a scheduled family cruise for July. These are just some short term goals that I need to plan for. I have long term goals besides retirement that I am planning for. I plan on buying a condo in 3 years. I am also interested in planning a purchase of my retirement residence, a home in Texas. Sitting with a financial planner and utilizing