Whats Holding You Back?

When it comes to financial matters, it can sometimes be difficult to truly live a “financially free” life. Sometimes, people are just too overburdened with debt to worry about anything else. Other times, people just can’t seem to get back on their feet or caught up on bills no matter what they do. If you are struggling financially, it is probably because you’re committing one of the “cardinal sins” of the financial world. Even if you’re not struggling, you could still be committing one of these sins, which will catch up to you eventually.

Mistake #1: Failing to Budget

One major mistake that can really mess you up financially is not budgeting your money. If you don’t have a spending plan and, instead, just buy things at random and hope you’ll have enough to make it through to the next paycheck, you’re making a grave error.

Not budgeting isn’t going to get you anywhere except broke! As soon as possible, sit down and determine how much you make, what your most important expenses are, and how much money you have left over to save or spend. Then, stick within the “rules” of your budget. You’ll never get off track!

Mistake #2: Not Tracking Your Spending

In addition to having a budget, you also need to make sure that you know exactly how much money you are spending and what you are spending it on. People who don’t know where their money goes are people who will never learn from their mistakes. They’re also people who are more likely to overdraft and pay the hefty fines associated with that error.

Instead of just spending freely and “guesstimating” how much money you have left at a given time, keep detailed track of all your purchases and how much you spend, and what you have left. Not only will this make it easier to keep track of your money, but it can also be a helpful way to determine areas of spending where you need to cut back.

Mistake #3: Not Stashing Money in Savings

You also have a problem if you’re not putting money into your savings account on a regular basis. No matter how hard it is, it is important that you save SOMETHING from each paycheck. Even if you can only manage a small amount of savings, that’s better than nothing, and it is possible to build your savings a little at a time.

In addition to having a standard savings account, you should also be saving for retirement, no matter how young you are. That day comes sooner than you think and truly is something you have to prepare for ahead of time.

All of these financial mistakes can hold you back from the lifestyle and even the future lifestyle that you want and deserve. Don’t let that happen to you! Start taking steps today to get yourself and your money back on track and to ensure a better, brighter future for yourself and those you love.

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Understanding the 403(b)

These days, there are all kinds of investment and savings options available, and, as such, it can be difficult to determine which ones are right for your particular needs and situations. One option that has been getting a lot of attention recently is the 403(b). If you are considering this particular choice, it’s important to understand what it is and how it works so that you can accurately determine whether or not it’s a good fit for you and your needs.  

The Basics

A 403(b) is what is considered a tax-sheltered annuity. In other words, it offers a way to save for retirement. It is designed specifically for employees who work with smaller companies.

In some cases, employees are actually required to have a 403(b) plan in order to work with their company of choice, but this isn’t always the case.

Those who do sign up for the plan will have contributions automatically deducted from their wages before taxes in most cases. Many people like the fact that, because of this, their contributions aren’t really noticeable; they don’t feel like they’re losing money and, instead, are just building up a nice little nest egg, little by little, each payday.

Annuities Vs. Mutual Funds

Another thing that people really like about 403(b) plans is the fact that they have some choices in terms of where their money goes. Typically, they can either choose annuities or mutual funds.

When going with the latter option, there’s a combination of stocks, bonds and money market holdings involved. For the former, contributors can choose between fixed annuities, equity indexed annuities, and variable annuities. The option chosen will influence the interest rate.

Because so many options exist, people can easily choose the 403(b) plan that works for them and their needs. The key is just to choose a low-fee 403(b).

Getting Your Money

Funds placed in a 403(b) plan are strictly for retirement. That means that, as is the case with many retirement plans, there are penalties involved if you attempt to take out your money early.

The general rule is that, in most cases, you will face hefty withdrawal penalties if you take out money before you have reached the age of 59.5. However, there are some exceptions. For example, if you switch jobs, you can roll over your funds. You can also make a withdrawal of elective deferrals if you experience verifiable financial hardship. The same goes for those in the reserves who get called up and those who become disabled.

Certain other exceptions do exist, so you can always check with your financial adviser to see if your desired withdrawal qualifies for a penalty-free exception.

403(b) Limits

Finally, keep in mind that contribution limits do exist with 403(b) plans. Currently, the limit on elective salary deferrals is $18,000. For total contributions, the limit is either $53,000 or all employee compensation, depending on which is lower. However, if you are over 50, you can make “catch-up” contributions of as much as $6000.

As you can see, 403(b) plans are good options for many people. The key is just to determine if such a plan will work for you and your needs. If so, you can contact a financial adviser to help you get started, and, if not, you can still contact a financial adviser to learn about other options that may work for you.

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Want to Get Rich?

Would you like to get rich? Of course you would; everybody would, but unfortunately, unless you win the lottery, getting rich doesn’t happen overnight. Instead, getting rich is a process, one that requires careful decision making and planning on your part.

To begin with, you should be making smart investments. A good financial management firm can help you to understand what makes up a smart investment and can tell you the best time to make those investments and how much you should invest.

Of course, once you do get wealthy, you have to learn how to manage that wealth. Fortunately, many financial management firms also act as wealth management firms, in that they can help you to take the wealth you currently have and to make wise choices with it, choices that will, in the long run, make you even more money. One of the best wealth management and financial advising firms in Naperville is Platinum Financial Associates. Whether you’re trying to make money, trying to decide what to do with the money you have earned, or both, the professionals there can assist you.

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Understanding Your Assets

Did you know that almost everyone (including you!) has some kind of assets? If you’re not sure what those assets are or even if you have any, however, you could be missing out on potential financial benefits. Obviously, the first step to getting the benefits you deserve is to figure out what your assets are. Most assets can be grouped into one of two categories: physical assets and financial assets.

Physical assets are objects or things of value that you actually possess, such as a very expensive piece of

jewelry. If you can hold it in your hand and it has value, it’s a physical asset. Financial assets, on the other hand, are money in any form. Whether it’s a savings account or a retirement fund, if it involves money, it’s likely a financial asset.

Knowing what your assets are and their type, however, won’t do you any good if you don’t know what to do with those assets or how to make them work for you. That’s where the help of an asset management firm can really come in handy. An asset management firm, such as Platinum Financial Associates of Naperville, can show you exactly how to determine your assets and how to put them to work for you!

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