BCR_Financial Planning_082623

Saving strategies for young adults

When a person is young, saving money may be the furthest thing from his or her mind. After all, this may be a time to enroll in college or trade school, make a first big purchase, such as a car, or even get married. Thinking about establishing a solid financial footing for the future can take a back seat when life is filled with so many significant events.

But it’s never too early to start saving — even when saving seems to be an impossible task. Young adults should keep saving in mind and look to various strategies that can set them up for long-term financial security.

SET LONG-TERM GOALS

It’s easier to save when saving is attached to specific goals. While some

may aspire to retire early, establish an emergency fund or to purchase a home, others may want to save for an overseas vacation. Motivation to save can make it that much easier to do so.

DETERMINE WHERE YOU SPEND THE MOST

Saving money on smaller purchases will add up over time, but to really build a robust savings, figure out your biggest expenditures and how you can cut back to pad your savings. The Logic of Money reports that the average American spends more than 60 percent of their income on housing and transportation. Figuring out how to cut costs in these categories can be a great way to save.

USE CASHBACK APPS

Young adults are tied to their digital devices. Why not make them work for you? Free cash back apps give you money back for various purchases. Ibotta and Dosh are just two cashback apps available. Some can be linked directly to a credit or debit card to have passive income deposited directly. With others, you can cash out as a direct deposit or via a payment app like PayPal.

SET ASIDE ONE-THIRD OF YOUR INCOME

Make it a point to put away $1 for every $3 earned into a savings account, advises U.S. News & World Report. That is a good measure for establishing a rainy day fund. If you don’t trust yourself to transfer the money, have a set amount automatically deposited

from your paycheck into a designated savings account.

TREAT CREDIT CARDS LIKE USING CASH

The “buy now, pay later” option is an attractive trap to fall into. Using credit cards often is a safer way to pay merchants, because you’re risking others’ money rather than your own with a debit card. However, using credit can make it challenging to visualize what you’re actually spending. Do not purchase more than you can pay off within each billing cycle. Set account alerts on your phone to let you know when you’ve hit your budgeted credit card spending limit. Resist the urge to open and use too many cards. MM22C517

How to decide if a home remodel makes financial sense for you

(BPT) - There comes a time when every homeowner looks around at their house and ponders a few upgrades. Sometimes, those ideas turn into full-on renovations as you reimagine your space to better meet your lifestyle. But before you start calling contractors, ask yourself: Does remodeling make financial sense?

Here are three tips to help you decide if a home renovation benefits your home and your finances.

IDENTIFY YOUR WANTS VS. NEEDS

How necessary are the improvements you want? Some home projects may end up costing you more than the value they provide. That doesn’t mean certain projects aren’t worthwhile.

“Home renovations come in all shapes and sizes. For some, it may be about the investment and increasing the home value, for a good few it might be about what looks the best, while others might not have a choice,” said Adam Fingerman, assistant vice president of equity lending at Navy Federal Credit Union. “Whatever the reason, it’s always a good idea to understand

how a large renovation might impact your finances and the overall value of your home.”

KNOW YOUR BUDGET

Consider creating a chart with all of your cost estimates, and include columns for high-, medium- and lowcost options. Don’t forget supplies for do-it-yourself projects and always allocate a certain percentage for unexpected expenses.

Also be sure to get estimates from different contractors and compare them. Carefully check references and business licenses.

EXPLORE FINANCING OPTIONS

Ideally, you’ve already established a home improvement savings plan. But if you’re planning to borrow, explore your financing options through your trusted bank or credit union.

“Think about the size of your project, whether or not you’ll have ongoing expenses, and your current finances,” said Fingerman.

For example, Navy Federal offers

members various options for funding home improvement projects, such as home equity loans, home equity line of credit or personal expense loans. Members also have access to a wealth of information to help them make informed decisions about the right financing products for their home improvement goals.

Home renovations of any size - large or small - can be overwhelming. Consider these tips to help make it easier and more affordable in the long run.

Navy Federal Credit Union is federally insured by NCUA. Equal housing lender.

FINANCIAL PLANNING

How confident are you that you’ll be able to retire?

check your retirement readiness is to use an online platform like Prudential Stages for Retirement.

This digital tool will take the information you share about your current financial life and retirement goals to determine your personal “confidence score,” which indicates your retirement readiness. In a few steps, you will have a clearer picture of your retirement based on how you are saving and investing today.

3.SPEAK WITH AN ADVISOR

Once you have a clearer view of the big picture, you can meet with a financial advisor to help map out a step-by-step financial plan. If you do not have a financial advisor, you’re not alone.

Millions of Americans do not have a financial advisor. Some do not because they don’t know how to find someone they trust. Still others may feel an advisor is not for them, mistakenly thinking they need a certain level of wealth to engage a professional’s help. However, establishing a relationship with a financial advisor can

help you confidently plan for a better retirement and even give you an edge.

According to the Warrington College of Business, industry data suggests that people who receive professional financial advice can add 1.5%-4% to their portfolio returns over time. Enlisting the help of a financial advisor can make planning for retirement easier and grow your wealth so you can achieve your retirement goals instead of having “just enough,” or even not enough.

Through Prudential Stages for Retirement, you can set up a meeting with a noncommission-based financial advisor who will recommend strategies and products that can help you reach your retirement goals. They will look at your retirement confidence score and establish a personalized plan to help you refine your goals and determine if you’re on track to afford your retirement. You do not have to be an existing Prudential customer; anyone can get started planning a more secure retirement. To learn more and get started, visit Prudential’s Retirement Calculator.

(BPT) - More Americans are retiring earlier than previous generations. According to a survey by the Federal Reserve Bank, their odds of retiring before age 62 rose to roughly 50% in July 2021, partly due to the pandemic. For many, moving up their retirement seemed like the right choice given the state of the labor market and economy, but many were not and are still not financially prepared to retire.

According to a 2022 retirement confidence survey from the Employee Benefit Research Institute, one in three workers are “not too” or “not at all” confident they will have enough money to live comfortably throughout their retirement. And for those surveyed who say they are confident, retiring “comfortably” only covers the basics like housing, transportation, health care, food and utilities.

Retirement can mean a lot of things, but most people envision it as a time after their working life to enjoy things they may not have had the time to do before. While this looks different from person to person, many look forward to traveling, visiting family and enjoying hobbies.

Are you confident you will be able to

retire with your basic expenses covered and enjoy the post-work life you’ve imagined? Check these three things.

1.DEFINE YOUR GOALS

After decades spent working, the prospect of retirement can feel sudden, and some people may have difficulty envisioning what it will look like. When you picture your retirement, what do you see yourself doing? Traveling abroad and checking cities off your bucket list? Paying for your children’s or grandchildren’s weddings? Setting up a legacy fund for your loved ones?

If you don’t yet know what you want out of retirement, start thinking now. Without clear goals, you won’t know how much money it will take to reach them. Beyond your core living expenses, consider how you would like to spend your time during your “gogo” (the first 10 years of retirement), “slow-go” years (middle retirement), and beyond.

2.SEE WHERE YOU STAND

Now that you have defined your goals, it’s time to see how your savings, investments, retirement accounts and other assets can support your desired retirement lifestyle. An easy way to