If you are spending a lot and borrowing a lot, you are likely not saving much at all. Saving, regrettably, requires discipline and willpower. It is also helpful when saving to have a clear purpose in mind. What are you saving for? How much do you need to have saved by what date in the future?
All of the big-ticket items we might borrow for are also items we could save for: new house, college tuition, vacation, new car or a wedding. However, the biggest ticket to save for is retirement. This is not an item we can borrow for.
Are you saving enough for retirement or for that time in the future when your earning power diminishes? With the help of a qualified professional, you can get clarity about whether you will have enough saved to last the duration of your retirement. Now may be just the right time to have your savings plan checked for its soundness.
Death and disability are the greatest risks to our financial picture. A thorough tune-up will include determining whether you are adequately protected from the costly consequences of these and other risks.
The financially healthy people are those who have managed to put their spending, borrowing, savings and risks into balance and have set themselves free from having to worry about money.
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Donald E. Askey, a Certified Financial Planner professional and president of Provident Advisory Group, is a registered fee-only adviser, headquartered in Newburyport. For questions, visit www.providentadvisory.com.