Setting Yourself Up for Financial Success: 5 Beginner Steps

Many years ago, I faced one of life’s hardest challenges: my husband’s illness and subsequent passing just nine months later. Left with my toddler aged son, the floss and navigating a new life felt overwhelming. Thankfully, we had taken a few crucial steps to stabilize the many years ahead through life and health insurance, real estate investments, and financial planning. This foresight allowed my son and I to live comfortably while growing and building our lives over the decades.

If you’re looking to establish a strong financial foundation, here are five essential steps to get you started:

Take a close look at your income, expenses, debts, and savings. Understanding where you stand financially is the first step toward making informed decisions. Create a budget to track your spending and identify areas where you can save.

Life is unpredictable. Aim to save at least three to six months’ worth of living expenses in a separate account. This fund will provide a safety net for unexpected events, such as job loss or medical emergencies, ensuring you won’t have to rely on credit.

Life and health insurance are critical components of a solid financial plan. Ensure you have adequate coverage to protect yourself and your loved ones. Consider life insurance to provide financial support for your family in case of unforeseen circumstances.

Start investing early, even if it’s a small amount. Explore options like employer-sponsored retirement plans (401(k), IRA) or other investment accounts. The earlier you start, the more time your money has to grow through compound interest.

Financial literacy is key to making informed decisions. Read books, attend workshops, or follow financial blogs (like mine!) to enhance your understanding of personal finance, investing, and real estate. The more you learn, the better equipped you’ll be to navigate your financial journey.

These steps are just the beginning. In my financial literacy program, I’ll delve deeper into each of these areas, providing you with the tools and knowledge to secure your financial future.