Page 24 - Cedarville Magazine Spring 2013 Volume 1 Issue 1
Basic HTML Version
The recent national news has been consumed with tax
hikes, debt ceilings, and fiscal cliffs. It’s enough to make you
wonder (perhaps aloud), “Does
anyone
in Washington know
how to balance a checkbook?”
We may feel powerless to fix the complex problems in our
national economy, but we have direct responsibility over
Single Professional
The trend in America seems to be
that recent college graduates are
delaying marriage and family in
order to focus on building their
careers. This provides them with
a great opportunity to secure themselves
financially, if they make sound decisions.
Paying off debt and beginning to save
money—along with learning to go without
luxuries in the short term— will pay off in
the future.
Today:
Give 10 percent of your income to your
church or other charitable organizations.
Give more as your income increases.
Put 10 percent of your income into
long-term or retirement savings.
Use 20 percent of your income to pay off
your debt. Debt keeps you up at night.
Get rid of it.
Live on the remaining 60 percent.
Tomorrow:
Continue to pay off high-interest debt
(credit cards or student loans).
Long-Term:
Obtain high-quality health insurance.
Nate Sowder ’08, WMS
Pillar Advisory Group
Raymond James & Associates
Dayton, Ohio
Single Parent/
One-Income
Whether you’re a single
parent or a family
living on a single income, it is important
to get organized financially. Money may be
tight, so you have to be smart with what you
have.Managing yourmoneywell will protect
your family now and in the future.
Today:
Find someone within your family
or church who can help you create a
monthly budget and a personal financial
statement. Determine: What do I own?
Whomdo I owe?What is my net worth?
What debts do I need to attack first?
Tomorrow:
Establish an up-to-date will that
addresses guardianship for your minor
children.
Long-Term:
Build and maintain an emergency
fund with three to six months of living
expenses.
Pray about your finances and seek
God’s wisdom for this important path
in your life.
Make retirement saving a priority.
Time is money’s best friend, and
procrastination its worst enemy.
Steve Houg ’97, CFP®
VisionPoint Advisory Group
West Des Moines, Iowa
Dual-Income
It’s often assumed
that dual-income
families are more
financially secure than their single-earner
counterparts, but additional earnings only
provide long-termsecurity with strict saving
goals and spending limits. Here’s how to
make real financial progress:
Today:
Create a weekly spending limit.
Develop an aggressive plan to become
debt-free.
Put aside $1,000 and then work up to
six months of living expenses.
Maintain term life insurance coverage
on each adult.
Take advantage of your company’s
retirement match, then work up to
contributing the maximum amount.
Tomorrow:
Aim to direct 20–40 percent of your
total income to savings, including
retirement.
Open IRAs and work up to contributing
the annual maximum.
Open a 529 college savings account
and begin monthly transfers for each
child.
Write your will, establish power of
attorney, and determine plans for your
dependents.
Long-Term:
Discuss the cost for permanent life
insurance vs. new term policies.
Calculate resources you will need to
retire, and adjust savings accordingly.
Carrie (Bassett) Ward ’01, CFP®
Harlan Miller & Associates
Dayton, Ohio
our household economies.
Cedarville Magazine
asked six
professional financial planners to share some tips to get your
personal financial houses in order, no matter your stage in life.
The opinions below are not meant to be comprehensive financial advice. For help
with your specific questions, please consult a financial planner in your area.
24
|
Cedarville Magazine
GET YOUR F INANCIAL HOUSE
