by Christen Marsenison of Envisage Information Systems
Chief Strategy & Development Officer
Many Americans will celebrate July 4th this Monday with family and friends, either on the beach, camping or from the comfort of their very own back yards. But what about your personal financial Independence Day?
What will define your financial Independence Day? Will it be defined by freedom from debt, mortgage, credit cards or maybe even the freedom from your “9-5”? If you’re like most Americans, it’s a combination of all these things, and navigating to a place of financial independence is complicated.
Financial professionals will tell you to start small—every penny counts. The key for most people is to work with someone who sees the world of finances the way you do, who will value what you want when that Independence Day comes. The person helping you should be aware of what’s important and how you will define success. A financial professional will also help you define your timeline; the dollar value amount of savings needed to retire at your desired Independence Day.
To plan, you and your financial advisor will need to look at the following:
- Eliminating Debt – Identify the total debt load and project the timeframe by which you will comfortably be able to eliminate it.
- Increase Savings – As you begin to remove debt, increase your savings allowances.
- Identify the day/month/year you wish to retire
- Work with a financial professional to ensure your savings are working the hardest they can for you.
At times, retirement can seem incredibly far away, even impossible. But with the right planning, it doesn’t have to be. So this July 4th when you’re watching the fireworks, think about your day of financial independence; you could celebrate sooner than you think!