With the start of spring, many of us begin to become more and more active throughout our communities, taking vacations, going out to eat and attending concerts/events. The joys of life in the short-term should always be enjoyed to fullest; but it’s important for all of us, especially younger professionals, to be prepared for our financial futures.
Throughout my education and countless discussions with parents and family friends, there are a handful of life events that I know I need to be prepared for financially:
- Retirement – There is an extremely high chance that Social Security as we know it will not be around by the time Millennial’ s reach retirement. Depending on your situation, it can be beneficial to invest in your company’s retirement account due to compounding interest and potential company matching policies that will enhance your savings for a stronger retirement.
- Emergency Fund – My favorite college professor told me that this fund should be kept to be able to fund your lifestyle (without many lavishes) for up to three months. Although this can be in different forms, it really is having liquid assets on hand in case of any sort of emergency.
- Family – Whether it’s marriage, children, or one-day having your parents move in with you, the cost of your relatives will always be the most important and the most expensive. In 2013, the average American couple spent $30,000 on their wedding. Maternity leave, medical bills and countless other costs of having a child can add new stresses if not prepared for financially. With Baby Boomers living much longer, our generation will be expected to provide financial resources and care to our parents’ generation.
No matter if you are recently-married, just became a parent or started your first job, taking a proactive step in recognizing your situation and where you can start to save is a significant step in preparing yourself for a better financial future. GBQ works with many qualified individuals and would be happy to recommend a capable financial advisor.