Discovering that you've won a lottery prize or inherited a large amount of money can be the most wonderful feeling you've ever had. Your mind is likely still reeling from the news and you can't wait to improve things for everyone you know. However, for your own sanity and financial future, it's vital that you don't start doing any of these things.
Avoiding the Facts
When you find out how much money you'll be getting, you may already be spending it in your head.
Caleb Bishop
- Most financial planners encourage people to start their financial planning by creating a budget and creating an emergency fund. An emergency fund is a special account you can create for times when you have unexpected expenses to pay for. If you do not yet have an emergency fund, here are three reasons you should start one today. It helps you stay out of debt An emergency fund has one main purpose, which is to provide a way for you to pay for unexpected expenses, and this is the only reason it should be used.
- If you have started thinking about your future, you may have decided you need to have a sound plan to ensure you will be financially stable. If so, you may also feel you need the help of a financial planner but are unsure of how to select one. If so, ask yourself and the individual the following three questions when meeting with a financial planner for the first time. Is The Planner Certified?
- If your family's finances are tight and you have not been able to start saving for retirement, then you need to find ways to make this possible. Due to the power of compounding interest, it is vital that you start saving for retirement as early as possible so your money has enough time to grow. Thankfully, there are many ways that most households can trim money from their budgets that can be used to fund a retirement account.
- Buying annuities are one popular option when adding to a retirement plan. However, there are some things you must be aware of before you begin the buying process, including the following: Crediting the Annuity There are a variety of ways an annuity is credited, and you can choose the one that is best for your overall financial needs. Average crediting each month gives you and even return despite the climate of the market at that time.