Perhaps a vacation home. Those are dreams that a sense of financial planning can make come true. Short-term goals, such as wiping out credit card debt, can appear to be just as difficult to achieve, particularly for those who fall into the minimum payment trap. To a person, they met their goals by putting a priority on saving their money, spending money on needs rather than wants. For the past six months, The Bee has published its personal finance series, Investments A to Z, in an effort to give readers a short course in crafting their financial future.
Financial planning goes far beyond budgeting or playing the stock market.
Unfortunately, too many people put it off until they reach their 40s or early 50s. Those in their 20s need to focus their efforts on going for growth, controlling the use of their credit cards and thinking long term. On the other end of the age spectrum, those in retirement need to focus more on safety, keeping their portfolio intact and carefully budgeting to make sure that their money lasts as long as they do. Financial planning is an ongoing process from the time one reaches adulthood through retirement. Set aside six months of living expenses in emergency savings.