Every payday important decisions are made, not just with what bills to pay but how to make financial assets growth in investment accounts. Investors need to also consider if some of the money will go into a savings account. Jordan Schwartz, independent financial planning advisor with Strategic Wealth Designers joined CBS4 to discuss emergency savings and long term savings.
“A great starting spot would be how do you get to 3 months-worth of cash in the bank. The ideal goal would be how do you get to 6 months. That is what we recommend as a firm that you should have,” said Schwartz. “I think a really good goal would be how do you get to a year’s worth of cash. Think about the financial security and the freedom that comes with that.”
When you get to your goal, whether it is 3 months-worth, 6 months or a year’s worth of cash in the bank, you should then shift your focus to more long term saving for the future.
“Seventy percent of what you make should go toward your living expenses. Take 20% of your income and pay off the debt. Take 10% and that goes toward your investments,” said Schwartz. “I know some people are going to be saying they can’t save 30% of what they’ve got, but if the government said they were going to charge 30 more percent in taxes, you would look at it and figure out how to live off of less.”
To learn more about this business topic and all financial investment news in the Indianapolis metro visit https://CBS4Indy.com/strategic-wealth. If you have a question or would like to schedule a complimentary portfolio review with Jordan send an email to email@example.com.