For many, the memory of it is still fresh. Less widely known is the savings and loan crisis of the 1980s and 1990s, a financial catastrophe that led to the collapse of over 1,000 S&L institutions. Yet Ben Miller, CEO of Fundrise, America’s largest direct-to-investor alternative asset manager, sees the S&L crisis as “the big bang of finance.”

The S&L crisis marked the point at which the modern banking landscape began to take its current shape, Miller said. And like the Big Bang, its ripple effects are still measurable today.

In a recent wide-ranging podcast interview, Miller delved into the S&L crisis, including the regulatory missteps made before and in response to the crisis, as well as the lessons it holds for today's financial markets. 

“I think there's three epochs of finance in American history. There's pre-[Great] Depression, there's the Depression to the 1980s, and there's the 1980s to now, and the S&L crisis is the turning point,” said Miller. 

“It's the origin. It birthed modern real estate, and I think it birthed modern banking.”

What Is a Savings and Loan?

To understand the S&L crisis, it’s key to understand its history as a centrepiece of American finance in the mid-20th century. On Fundrise’s “Onward” podcast, Miller and co-host Cardiff Garcia dove deep into the history of the concept. 

They explained that S&Ls, also known as thrifts, were created as financial institutions primarily focused on taking deposits and providing home mortgages. Unlike banks, they were not diversified and did not offer other types of loans. They were mutual organizations, meaning they were owned by the depositors, not shareholders. This made them inherently conservative and focused on serving local communities. 

Fans of actor Jimmy Stewart will recognize the concept of an S&L from his character’s Bailey Bros. Building & Loan in It’s a Wonderful Life.

“The important thing to note is that they were very simple,” said Garcia. “You put your money into this thing like a deposit. It was lent out to somebody to finance a home and then it would get paid back.” 

While a simple idea, the S&L was a revolutionary step in finance in that it enabled average Americans to realize the goal of home ownership.

The Anatomy of a Crisis

However, S&Ls were ripe for crisis, particularly in an environment of rising interest rates and regulatory missteps. 

Regulation Q, established by Congress in 1933 to prohibit banks from paying interest on checking accounts, was amended in 1966 to cap the interest rates that S&Ls could pay to their depositors. It still allowed a high enough rate to be a preferable option to traditional banks. This was designed to protect S&Ls and make them more attractive for savers. 

Miller explained that S&Ls were able to give depositors a savings rate that was 50 basis points, or about 0.5%, higher than those given by banks. “So, essentially you're going to put your money with the S&Ls because you're going to get paid more to do that," he said. 

But this change to Regulation Q, initially intended to protect S&Ls, became a double-edged sword. It capped the interest rates S&Ls could offer depositors, so when inflation and interest rates soared in the 1970s, S&Ls found themselves in a precarious position. They were receiving lower interest on the long-term mortgages they had issued, and they were no longer an attractive option for depositors because the rates they could offer were capped. 

This interest rate mismatch meant the S&Ls were taking in fewer deposits, while the value of their previously issued mortgages, locked in at lower rates, plummeted. 

Moreover, S&Ls began to engage in riskier investments, including speculative real estate ventures, to compensate for their dwindling profits. As these risky investments began to fail, public confidence in S&Ls waned, leading to runs on deposits and setting the stage for the crisis that would unfold in the 1980s. 

While S&Ls still exist, the crisis toppled them from their standing as the primary source of home loans in America, leaving a gap in the real estate market out of which would emerge first larger, diversified lenders and now startup fintech companies like Fundrise. 

Fundrise and the Evolution of Real Estate Investment 

Miller described the S&L crisis as the "birth of the modern banking sector," with the emergence of national banks and diversified lending portfolios. It also created the modern real estate market landscape. 

"Out of this period is a rebirth, this phoenix, and everything we take for granted as normal in real estate.”

The crisis led to a vacuum in the real estate financing sector. Traditional sources of funding were either insolvent or too cautious to lend, paving the way for the rise of real estate private equity. These firms stepped in to provide much-needed capital, often targeting distressed assets that could be acquired at a discount. The private equity model allowed for more flexible and strategic investment, often involving the renovation and repositioning of assets to generate higher returns.

More importantly for Miller and Fundrise, the crisis led to the emergence of public real estate investment trusts. Before the crisis, real estate investment was largely the domain of wealthy individuals and institutional investors. The emergence of public REITs helped democratize access to real estate investment by allowing individuals to buy shares in large real estate portfolios, much like buying stocks. This opened up new avenues for investors to participate in the real estate market.

With Fundrise, Miller initially sought to build on the REIT model by combining it with fintech software to improve accessibility. The company has since branched into using its technology for other investments, including private credit. Miller believes regulatory mistakes facilitated and exacerbated the S&L crisis and other financial crises, and this is a reason to pursue a more direct-access model of finance facilitated by fintech. 

“It's the government backstop that's the problem, and 10 years from now when people forget about how bank deregulation is a problem and we have another blowup, which has pretty much always happened in the history of finance, you might see that technology has made intermediation of finance better than using an old fashioned bank.”

Managing Debt for better mental health

In today's fast-paced society, financial stress has become one of the leading contributors to mental health issues. The debt burden can weigh heavily on individuals, causing anxiety, depression, and even addiction. However, by taking proactive steps to reduce debt and improve financial health, it is possible to alleviate the mental toll that debt can have.

Proactive Steps to Reduce Debt and Improve Mental Health

Dealing with debt can be overwhelming and stressful, but taking proactive steps to manage it can not only improve your financial situation but also have a positive impact on your mental health. Here are some additional strategies and insights to help you on your journey toward debt reduction:

1. Prioritize your debts strategically:

While it's important to pay off all your debts, it can be beneficial to prioritize them strategically. Consider focusing on high-interest debts first, as they tend to accumulate more quickly. By tackling these debts first, you can save money on interest payments in the long run. However, it's also essential to maintain minimum payments on all your debts to avoid penalties and late fees.

2. Explore debt snowball or avalanche methods:

The debt snowball method involves paying off your smallest debts first, regardless of interest rates. This approach can provide a sense of accomplishment and motivation as you eliminate smaller balances one by one. On the other hand, the debt avalanche method focuses on paying off debts with the highest interest rates first, potentially saving you more money in the long term. Consider which method aligns better with your financial goals and personality.

3. Seek professional advice:

Managing debt can be complex, and seeking professional advice can make a significant difference. A financial advisor or credit counsellor can help you develop a personalized debt repayment plan based on your unique circumstances. They can provide insights into budgeting, negotiating with creditors, and exploring debt consolidation options.

4. Implement lifestyle changes:

Reducing debt often requires making lifestyle changes and adjusting your spending habits. Take a closer look at your monthly expenses and identify areas where you can cut back. This might mean reducing discretionary spending, finding more affordable alternatives for everyday items, or even downsizing your living arrangements temporarily. While these adjustments may be challenging in the short term, they can have a substantial impact on your debt repayment efforts.

5. Build an emergency fund:

Unexpected expenses can derail your debt repayment progress. By setting aside some money each month into an emergency fund, you can create a financial safety net. This fund can help cover unforeseen costs, such as medical bills or car repairs, without resorting to credit cards or taking on more debt.

6. Celebrate milestones along the way:

Reducing debt is a long-term journey, and it's essential to celebrate your achievements along the way. Set milestones for yourself, such as paying off a specific debt or reaching a certain amount of debt reduction. Rewarding yourself for reaching these milestones can provide motivation and reinforce positive financial habits.

Remember, managing debt takes time, patience, and perseverance. By implementing these strategies and staying committed to your financial goals, you can reduce your debt and improve your mental well-being in the process.

How to Create a Budget to Help Manage Your Debt

Creating a budget is one of the most critical steps towards managing debt effectively. A budget allows you to track your income and expenses accurately, giving you a clear understanding of where your money is going. When creating a budget to help manage your debt, consider the following:

Start by listing all your sources of income, including your salary, investments, or side hustles. Determine the total amount you earn each month.

When listing your sources of income, it's important to consider all possible avenues. This may include not only your primary job but also any additional income streams, such as rental properties or freelance work. By including all sources of income, you'll have a comprehensive view of your financial situation, allowing for more accurate budgeting.

For an accurate tally of your monthly earnings, especially if you're juggling multiple income streams or freelance work, utilizing a paystub creator can simplify the process, ensuring every dollar is accounted for in your budgeting.

Next, identify your fixed expenses – these are expenses that recur every month and remain relatively constant, such as rent or mortgage payments, utility bills, and insurance premiums.

Fixed expenses are the backbone of your budget. They are the regular payments you make each month that are necessary for maintaining your lifestyle. It's important to carefully consider these expenses and ensure they are accurately reflected in your budget. By doing so, you'll have a clear understanding of the minimum amount you need to cover each month.

Take into account your variable expenses – these are expenses that may fluctuate from month to month, such as groceries, transportation, entertainment, and dining out. Be sure to allocate a realistic amount for each category.

Variable expenses can be more challenging to budget for since they can vary from month to month. It's important to review your spending habits from previous months to get an idea of how much you typically spend in each category. By allocating a realistic amount for variable expenses, you'll have a better chance of sticking to your budget and avoiding unnecessary debt.

With a clear understanding of your income and expenses, calculate how much you can afford to allocate towards debt repayment. Prioritize this amount in your budget and make it a non-negotiable expense.

Debt repayment should be a top priority when creating a budget to manage your debt effectively. By allocating a specific amount towards debt repayment and making it a non-negotiable expense, you'll ensure that you're actively working towards reducing your debt. It's important to be realistic in your calculations and avoid overcommitting yourself, as this could lead to financial strain.

Track your spending diligently and make adjustments as necessary. Be mindful of any unnecessary expenses that can be eliminated or reduced to free up additional funds for debt repayment.

Tracking your spending is an ongoing process that requires discipline and awareness. It's important to regularly review your budget and make adjustments as necessary. By being mindful of unnecessary expenses, you can identify areas where you can cut back and allocate more funds towards debt repayment. Small changes can have a significant impact on your overall financial health.

Creating a budget may initially seem daunting, but it is an essential tool in managing debt effectively. By tracking your expenses and prioritizing debt repayment, you will be taking positive steps toward better financial health and improved mental well-being.

The Impact of Poor Money Management on Mental Health

Poor money management can have a significant impact on mental health. The stress of living paycheck to paycheck, being overwhelmed by debt, or constantly worrying about financial stability can lead to various mental health issues.

One of the primary consequences of poor money management is increased stress. Constantly worrying about money can lead to anxiety, sleep disturbances, and even panic attacks. Financial stress can also strain relationships, as it often leads to arguments and tension between partners or family members.

Moreover, the impact of poor money management goes beyond just the immediate stress. It can have long-term effects on an individual's mental well-being. For instance, the constant struggle to make ends meet and the inability to save for the future can create a sense of hopelessness and despair. This feeling of helplessness can contribute to the development or worsening of conditions like depression and chronic anxiety.

Additionally, poor money management can contribute to feelings of guilt and shame. Individuals may feel inadequate or irresponsible for their financial situation, resulting in low self-esteem and a negative self-image. These emotions can further exacerbate mental health conditions such as depression and anxiety.

Furthermore, poor money management often leads to a lack of financial security, making individuals vulnerable to unexpected emergencies or financial crises. The fear of not being able to cover essential expenses or facing insurmountable debt can be overwhelming, leading to feelings of hopelessness and despair.

It is important to recognize the impact that poor money management can have on mental health and take steps to mitigate these effects. By actively working towards improving financial literacy, seeking professional advice, and taking control of your finances, you can improve both your financial well-being and mental health.

Improving financial literacy is a crucial step in managing money effectively. Understanding concepts such as budgeting, saving, and investing can empower individuals to make informed financial decisions. By educating oneself about personal finance, individuals can gain the confidence needed to take control of their financial situation.

Seeking professional advice can also be beneficial for those struggling with poor money management. Financial advisors or credit counsellors can provide guidance on budgeting, debt management, and creating a financial plan. These professionals can help individuals develop strategies to improve their financial situation and reduce the stress associated with money management.

Furthermore, taking control of your finances involves developing healthy financial habits. This can include setting realistic financial goals, tracking expenses, and creating a budget. By implementing these habits, individuals can gain a sense of control over their financial situation and reduce the anxiety and stress associated with poor money management.

In conclusion, poor money management can have a profound impact on mental health. The stress, guilt, and insecurity that come with financial instability can lead to a range of mental health issues, including anxiety, depression, and even panic attacks. It is crucial to recognize the importance of financial well-being and take proactive steps to improve money management skills. By educating oneself, seeking professional advice, and developing healthy financial habits, individuals can enhance both their financial situation and mental well-being.

The Benefits of Good Financial Health for Your Mental Health

On the other hand, striving for good financial health can have significant positive effects on mental well-being. When individuals feel in control of their finances and have a solid understanding of their financial situation, they experience reduced stress and improved psychological well-being.

One of the primary benefits of good financial health is increased peace of mind. Knowing that you have an emergency fund in place, are saving for the future, and are actively managing your debt provides a sense of security and stability. This certainty helps reduce anxiety and allows individuals to focus on other aspects of their lives.

Good financial health also promotes a sense of empowerment and self-confidence. Taking control of your finances and achieving financial goals fosters a positive self-image and a belief in your ability to overcome challenges. This increased self-esteem positively impacts overall mental well-being and contributes to a higher quality of life.

Beyond the individual, good financial health can also improve relationships and social connections. Money is often a source of conflict within partnerships and families. By managing finances together, openly communicating about money matters, and working towards shared financial goals, relationships can be strengthened and trust can be cultivated.

The benefits of good financial health extend beyond mental well-being. Being financially stable allows for greater freedom and flexibility in career choices, lifestyle decisions, and the ability to pursue personal passions and interests. This overall sense of fulfilment and happiness further enhances mental health and overall life satisfaction.

In conclusion,

managing debt effectively is crucial for maintaining good mental health. By taking proactive steps to reduce debt and creating a budget to manage finances, individuals can alleviate the stress and anxiety associated with financial burdens. The impact of poor money management on mental health is substantial, but by striving for good financial health, individuals can experience improved mental well-being and a higher quality of life. Don't let debt control your life – take control of your finances and prioritize your mental health.

Track your spending to improve your finances

If you want to get your finances under control, the first step is to be aware of how much money you're spending. MoneyTrack is a great app that can help with this, by letting you track all of your expenses in one place.

Once you know where your money is going, you can start to make changes to save. One easy way to do this is to cut back on unnecessary expenses, like that latte daily or those new shoes you don't need.

Create a realistic monthly budget

Creating a budget that works with your lifestyle and spending habits is essential to effective personal finance management. You'll need to track your income and expenses regularly to ensure you're sticking to your budget, and make adjustments as needed. Here are a few tips to get started:

• Start by listing your monthly income and expenses. Be honest and include everything.
• Once you have a clear picture of where your money is going, look for ways to cut back on unnecessary expenses.
• Make sure you're automatically transferring a fixed percentage of your income into savings each month.
• Invest in yourself by taking advantage of employer-sponsored retirement plans.
• Don't forget to review your budget regularly and make adjustments as needed.

Build up your savings—even if it takes time

Making regular contributions to a savings account is one of the smartest things you can do for your financial security. It may not provide an immediate payoff, but if you ever lose your job or experience another financial hardship, you'll be glad you have that money saved up. And if you don't need it, you can always use it to get ahead financially.

Pay your bills on time every month

There are a few other things you can do to make sure your bills get paid on time. Automatic payments can be set up through your bank, so your payments are automatically deducted from your account each month. You can also sign up for email or text reminders to ensure you don't forget to pay your bills.

Cut back on recurring charges

One of the best ways to get your personal finances in order is to cut back on recurring charges. This could include things like cable TV, Netflix, Spotify, or even gym memberships.

If you're not using a service anymore, or if you can get by without it, cancel it. You'll be surprised at how much money you can save by getting rid of things you don't need.

Another way to get your finances in order is to make a budget and stick to it. Figure out how much money you need to live each month, and then make sure you don't spend more than that.

Save up cash to afford big purchases

Certain kinds of loans and debt can be helpful when making major purchases, such as a house or even a car that you need right now. For instance, getting a home equity loan can let you borrow against the equity in your home, which can be a great way to get cash for a down payment on a new house.

Similarly, if you get a car loan, you may be able to get a lower interest rate than if you were to finance the car with a credit card.

Start an investment strategy

Investing may seem like a complex and intimidating process, but it doesn't have to be. If you're just starting out, it's important to keep things simple and begin with a basic investment strategy. You can always add more complexity as you become more comfortable with investing.

There are many different types of investment accounts, but the most common are individual retirement accounts (IRAs)s. An IRA is a personal savings account that allows you to invest in a variety of different stocks, bonds, and mutual funds.

Bottom line

If you're looking to get a quick loan to help manage your personal finances, check out our website. We offer a variety of loans to suit your needs, and we're here to help you get the money you need. Apply today and get started on improving your financial situation.

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Getting your finances in order

The first stage involves understanding exactly what your incomings and outgoings are each and every month. Equipping yourself with this knowledge will make it easier to plan, budget and take control of your money. 

Make sure you take into account bills, rent or mortgage payments, food shopping and travel costs. You’ll also need to consider any loans you might have, including online loans and credit cards, so you can develop an effective budget plan. 

This will help you see where you spend most of your money and can even flag any frivolous spending that can be easily cut back on. If you find that your outgoings outweigh your incomings, you’ll need to work out a plan to reduce your spending. Simple suggestions include walking instead of taking the car, where possible, taking your lunch to work instead of buying from the café, or reducing your nights out. 

Set up a budget

Once you know your total income after essential outgoings and expenditures, you’ll be able to create a budget. Allow yourself a set amount to spend on non-essentials or luxuries such as eating out once a month, a night at the cinema or an occasional treat. Not factoring this spending into your budget is unrealistic but setting yourself a reasonable and affordable limit will help you stay on track. 

It’s important to consider any big events in your budget such as Christmas, weddings, birthdays or holidays. Planning ahead will help you save and limit any unexpected costs. If you use credit or debit cards for most of your spending, you might find it useful to make note of your transactions throughout the month, so you know how well you’re sticking to your budget. 

Start saving

It’s not easy to save money, especially with high food costs and the increase in bills. However, putting even a small amount away each month will contribute to positive financial health in the long term. 

Start small and set a realistic goal so you don’t become disheartened. Once you’ve paid off any outstanding debts or loans, you can increase your savings amount each month. 

Managing your finances can be stressful, particularly if you’re struggling to keep up with payments or afford everyday essentials. If you’re feeling like you’re not in control of your money, it’s important to seek advice from your bank or from a specialist charity such as Citizens Advice. 

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However, it is simpler than you might think when it is broken down into smaller steps. Here are some tips that can help you secure your future by managing your personal finances. For more detail about useful resources, there are financial experts who can assist you with this.

1. Understand Your Credit Score

Firstly, one of the most crucial parts of planning your personal finances is understanding the role that your credit score plays. Banks and money lending institutions typically use someone’s credit score to see how likely they are to repay a particular loan before approving their application. 

A higher score indicates that someone is more likely to repay the loan in full within the prescribed time. Because of this, it is worth knowing the ways that you can improve your credit score. This is typically done by paying off your regular bills such as rent and utilities on time. 

Whether that occurs at the start of the month or the end, make sure that you are setting reminders to pay your bills when they are due. This allows you to avoid any outstanding debts that can lead to a poor credit score over time. 

2. Set A Realistic Budget

Similarly, setting a realistic budget is a useful way of keeping track of your spending and figuring out how to save a little money for the future. Many people try to set a strict budget that is difficult to follow, but the best way to secure your future through financial planning is to make gradual changes over time. 

This way, you can create a habit of saving without stressing over meeting certain goals immediately. Consider brainstorming what items you spend money on during a typical month, then decide if each is a want or a need. 

Impulsive purchases can be challenged in this way, and it can also allow you to find more affordable utility providers if the majority of your income is being spent on bills. It could also be worth cancelling certain payments that you don’t use, like a subscription service or gym membership, if you don’t use it. 

Once you have taken a look at all of your options, you can use budgeting resources to assign your regular income to certain items. This allows you to see how much money you will have leftover and holds you accountable to stick to your budget. 

3. Establish Saving Goals

After setting a budget for yourself with realistic allocations of money, it is important to think about your savings. You should try to set aside small amounts to put towards your savings each month if possible. There are a range of different savings accounts available with most banks, and it is worth looking into the different options. 

Setting savings goals for yourself can allow you to keep track of your savings, and consider the end goal. For some, this could be a deposit on their dream home. While others may prefer to keep their savings for emergencies. 

Consider thinking about what is essential to you, and what type of thing you want to start saving for. This can be a great way to encourage better financial habits over time, by working towards your savings goals. 

4. Prioritise

Another thing to keep in mind when you are changing your relationship with money is that you should prioritise. This means putting your long-term financial goals to one side if you are struggling to make ends meet each month. There is no point in putting yourself into debt if it can be avoided, and you should make sure that you can afford your current lifestyle. 

During the budgeting process, something to consider is what is important to you. This should be prioritised if possible, or it could be used to motivate your savings habits. Avoid impulsive purchases by reminding yourself what you are working towards, and your financial goals for the future. 

5. Pay Off Debt

One of the biggest contributors to poor credit scores is outstanding debt. This is because so many people find themselves unable to pay their regular bills and the instalments on an outstanding loan. Consider prioritising your debt repayments if possible, and start working towards a healthier credit score over time. Debt consolidation loans are great for someone who has multiple debts that need to be paid. 

This is because they typically pay off the amount needed for each loan repayment, and help simplify the process by being a single repayment that you need to budget for, rather than multiple. If it is possible, try to pay off any outstanding debt in order to stop your credit score from getting worse over time. 

6. Consider Insurance

Additionally, it could be worth getting insurance for your assets in order to protect yourself and your loved ones. Make sure you are insuring all of your property where possible in order to avoid significant fees in the future. Home insurance helps by providing access to repair fees when needed. For example, if your home gets severely damaged in a storm, and you need to replace the roof urgently. Insurance can help cover some of the fees required, which will prevent you from falling into debt in the long run. 

Summary

When it comes to changing your financial habits, it can be hard to know where to start. Because of this, budgeting and understanding the role that your credit score plays can allow you to create more sustainable habits in the future. 

Consider taking a closer look at your current spending habits, and identify certain items that you can save money on. It is also worth making use of online resources to find the right budgeting tool for you. Saving for the future can allow you to feel closer to your financial goals, like a vacation or wedding.

While this is the norm, the earlier you can start thinking about making a retirement plan, the better off you will be when the time comes to hang up your hat.

Seniors are living longer and longer every year and this can mean that your traditional savings plan may need to be amended. Instead of saving to have a steady income for a decade or so, you now may need to find a way to pay your expenses for a quarter-century or more.  With the right advice from a financial planner, they can help you make decisions about your savings, retirement rollover, and your potential retirement income. Let’s take a closer look at a few reasons why  retirement planning is crucial for your future. 

1. Rising Life Expectancy

In 1990, the average life expectancy was only 75. If you retired at 65, you only had to find a way to pay your expenses for a decade or a bit more. For most workers, that was a manageable amount. In today’s world of sophisticated technology and medical advances, the average lifespan tops out at 82 and is expected to rise. Retirees can now enjoy up to 20 to 30 years of their golden years after they stop working. Being able to live comfortably for a quarter of a century with only your retirement savings may seem like a challenge. Making a retirement savings plan now will help you to grow your investment and have the money you need after you retire. 

2. Less Stress

One of the most common causes of stress-related illnesses is money troubles. When you are constantly worrying about how you will take care of yourself, your spouse, and your home when you retire, you can experience high levels of stress. When you work with a financial advisor to come up with a logical retirement plan, you can relax in the knowledge that your needs will be met in the future. You will be able to kick back and enjoy your golden years if you start your retirement planning now.

3. Financial Obstacles

If the devastating COVID-19 pandemic has taught us anything, there are never any guarantees when it comes to the economy. If you don’t have a solid retirement plan now, there is no way to be sure that you won’t face financial obstacles in the future that could affect your savings. When you construct a reliable retirement plan, you can be assured that you will have the funds you need for retirement regardless of the economic state. 

4. Independence

No one wants to feel like they are a burden. Many seniors are concerned that they will end up relying on their children and other family members without the right retirement plan when they stop working. When you make a solid retirement plan, you will be able to maintain your independence and enjoy your time with your family without having to feel like a burden. 

Conclusion

Retirement planning should be a priority for everyone that is currently working. The earlier you can start saving for your golden years, the more time you will have to enjoy the time you have spent a lifetime working towards. 

1. Map Out Your Goals

Think about your financial goals, now and in five-year increments. Maybe you want to travel for three months. Or, maybe you want to start a family or buy a new home. Once you write down your goals, you need to prioritise them according to importance. Decide which one of your wants is easiest to achieve and which will take longer. The ones you put at the top of the list are the most important.

If buying a new home in a year is your number one goal, you will need to make a down payment. You could dip into your savings, or you could look into getting a life settlement. A life settlement is when you sell your policy to a third-party buyer. In turn, you receive a portion of the total cash value. The third-party then becomes the owner of the policy. If you’re not sure how the process works, there are guides that go over the best life insurance settlement companies so you can find a reputable company that fits your needs.

2. Put Your Plan In Motion

Once you flesh out your plan, you need to put it in motion. You need to set realistic milestones for each goal and then create a strategy to surpass them. If you’re trying to pay off a high-interest credit card, where can you cut corners in other areas? If you work out at the gym, you could start exercising at home. On average, you could be saving up to $50 dollars a month just by getting in shape at home. You could then put that money onto your credit card to lower the interest rate and pay off the balance. There are plenty of other ways to save money, which include bundling your insurances, shopping for off brands and clipping coupons. You can also buy gently used clothing instead of new clothing. Now, you can buy high-end clothing and accessories for a fraction of the cost online.

3. Create A Budget

Everyone says they have a budget, but how many people actually stick to it? Look at your finances and see which areas you’re having the most trouble with. Create a new budget, which aligns with your goals, and think of strategic ways to stick with it. Note, your budget doesn’t need to be so strict that you can’t have any spending money. You can set up automatic money transfers from your checking account into your savings. That way, you won’t be tempted to overspend. You can also set up your savings account so there’s a limit on how many withdrawals you can make within a month.

4. Reward Yourself

Once you reach your goals, don’t forget to reward yourself. It’s easy to get so caught up in saving that you might forget to treat yourself.

Taking time out to reflect on your money and how much things like housing costs will affect your future is crucial. So take time to read the following, and decide for yourself if hiring a financial planner is the right choice for you.

What Is A Financial Planner?

Financial planners are specialists who provide financial advice to their clients. They can help you with budgeting, savings goals, investing and finding the best way to accomplish those things through life's changes: marriage, divorce, children, and so on. Most of them work as employees of a bank or a firm. 

Regardless of where they work or what services they offer, financial planners all have one thing in common. They provide advice and guidance so clients can reach their highest potential when it comes to money matters. If you need some help in setting and reaching your financial goals, always seek the help of expert financial planners. These people know the ins and outs of the business. It would be the best choice you have if you want help not just with your goals, but your financial problems as well. 

Why Should I Hire A Financial Planner?

It is essential to have a professional help you manage your money so you can grow it. You might not realise that high fees or sub-par investments are draining your savings. But having an expert act as your eyes and ears will keep that from happening.

You might not even know your financial situation well, but a planner does. And they will find ways to make it work for you. They can offer advice on everything from taxes to investments. They will also help you set up plans that are specific to your needs and goals. For sure, hiring a financial planner is not an easy decision. However, you will be glad that you did when your money and investments are better-taken care of. You deserve to have the best, and that is what a planner can do for you.

Benefits Of Hiring Financial Planners

There are countless benefits to hiring a financial planner. In fact, some benefits are so great that you might wonder why someone wouldn't want to hire one in the first place. With a financial planner, you can:

• Achieve your long-term goals, such as saving for retirement and paying for a college education.
• Get to see if you're on track to reach your short-term financial goals.
• Have a tailored investment strategy for your goals, risk tolerance, and other factors.
• Receive professional advice and guidance on all money matters.
• Have a chance to take a step back from the details to gain a broader perspective of your financial situation.
• Meet your financial goals more quickly and with less hassle than if you tried to do it yourself.
• Take advantage of their expertise in building savings and retirement plans.
• Make the most out of your investments by knowing when to buy and sell.
• Avoid mistakes that could derail your plans for achieving goals.

How Do I Find The Right Financial Planner For My Needs?

When hiring a financial planner, try to find one who charges a flat fee for advice. That lowers the risk that he or she will push investments that offer higher commissions instead of recommending ones you need.

If you're charged by the hour, it's okay if your advisor takes more time than expected to help you research investments because you only pay for the advice given. While, if you choose someone at a bank where you already have an account, your chances of being satisfied are even higher. 

You can even get to know the person and judge whether you have a good rapport with him or her. And if you want to, you can also ask for referrals from someone you know since a trusted referral is another effective way to find a company you can work with.

How Much Will It Cost Me?

It's important to understand that you will pay for the advice and guidance of a financial planner, whether by hiring them or paying an annual fee. Some planners charge hourly fees, while others use a flat fee, so it's important to know what you're getting before committing. Generally, you'll pay more for the help of a financial planner if they're not affiliated with your bank. They'll likely charge you around $100 an hour, but you'd be surprised at their ability to provide insights when it comes to your money situation.

Conclusion

It's not easy to find the right professional to assist you with your finances. But if you do thorough research and keep a long-term perspective in mind, a financial planner can provide tremendous value that will help ensure your finances are always on track. 

For example, if you have a more sophisticated financial situation, universal life insurance can help you achieve multiple goals like providing a death benefit from your family, while also helping you accumulate funds that you could use to supplement your retirement income. Here are some other ways to consider planning for early retirement in 2021.

1. Make the most of your savings

It’s no secret that saving is an essential component of retirement, but putting everything into a savings account isn’t going to cut it for most people. When you’re getting ready for your eventual retirement, be sure to consider what sorts of retirement savings programmes are available to you through your employer or other means. Examples may include an individual retirement account (IRA) or a 401K, which are designed to help you grow a nest egg in a tax-advantaged way. Be sure to consult a professional financial advisor about the best investment products and strategies that are available to you. 

2. Put in the hard work now

While you’re young and have the energy, make the most of it by working hard. In addition to your primary income, there are a plethora of other things you can do to earn extra income on the side and reach your financial goals faster. For example, if you do gig work on the side as a freelancer or independent contractor, that can be a great way to earn extra income, but keep in mind you’ll owe taxes on the additional income and you may have to pay quarterly estimated taxes. Be sure to keep track of any expenses you incur while freelancing or operating your side business so that you can accurately report your profits and losses, and offset your tax obligation with any eligible itemised deductions. 

3. Protect your progress with life insurance

Planning for retirement isn’t just about not working anymore--it’s also about building your legacy for the people you care about the most. While you’re in the process of building your retirement nest egg, you want to make sure the people who depend on you financially don’t face financial hardship if something happens to you. Some types of life insurance offer more than a death benefit to create that safety net for your beneficiary(ies). Some life insurance policies offer cash value, which accumulates over time. This can make some types of permanent life insurance a very useful tool for financial planning for retirement and beyond. Be sure to consult a financial advisor to go over your best options. 

The bottom line 

Early retirement is best made possible with proper planning. The more you can earn and save now, the sooner you’ll be able to retire early and/or reach other financial goals. Just be sure you have the right assurances in place so that all your hard work is never in vain. 

Consider Your Plans

What does retirement look like to you? Do you want to stay in the home that you currently live in and spend a lot of time with your grandchildren? Do you hope to move to a place that has a big population of retirees, like Florida or Arizona? Or maybe, like some American retirees, you hope to move to another country where the cost of living is lower. Maybe you want to go back to school, start that business you never had time for or go mountain climbing. 

The possibilities for retirees are greater than ever before, so don't fence yourself in with thinking about what you are supposed to do. If you don’t yet know exactly how you want retirement to look that is okay too, reading investment books can help you learn how to best save now regardless of how your retirement looks in the future. Knowing what kind of a lifestyle you want will help you with the rest of your planning. Revisit your plans every so often to see if you still envision the same kind of lifestyle or if you need to make some adjustments.

Know Your Assets

Understanding what you have, and its value is also important. For example, if you plan to sell your home and move, you should have a realistic idea of what your house is worth. You may have some assets that you do not realise are valuable. If you no longer need your life insurance policy because your children are adults, you can look into selling the policy for a life settlement. You can learn more about how to leverage those assets for you and review a policyholder's guide to modified endowment contracts.

Max Out Your Retirement Contributions

Whatever your age, you should be contributing as much as you can to a retirement fund and not buying into some common lies we tell ourselves about retirement and saving for it. This is particularly true if you have an employer-sponsored account that includes matching funds. If you are young, the money that you put away now has the potential to grow exponentially and provide you with a substantial amount of savings to retire on. If you are nearer retirement and worried about having enough saved, it might be possible for you to make larger catch-up contributions to your account.

Check Your Social Security

When you are figuring out how much you have for retirement, don't forget about Social Security. You can use a quick calculator at the federal government website to get an idea of what your payments will be. The Social Security Administration also periodically sends this information out to you.  Other things could affect your payment as well. For example, if you are divorced from someone you were married to for more than 10 years and they made substantially more than you, you might be able to draw on their benefits. This does not affect the benefits that your ex-spouse can receive.

Moving into your 30s likely means being bombarded with new responsibilities like family dependency, loans, EMIs, insurance, kids, etc. And the list goes on. As such, it is important to be cautious and avoid any careless financial steps that could stun your financial growth and make you financially stagnant in the coming comings. Your 30s is the time to get smart with money. It might take some discipline to adopt sound financial habits, but they are sure to help you build your wealth. Here are some simple financial goals to pursue as you venture into your 30s. 

Create a budget and stick to it 

Spending frivolously can keep you from pursuing your financial goals. Hence, create a budget and stick to it. The idea is to know where your money is flowing. Once you are aware of your spending habits, you can make sound financial decisions. 

Even small expenditures like eating out or shopping can affect your financial plans in the long run. To stick to wise spending habits, document your expenses. Jot down how much you spend and what you spend your money on. Keep the receipts and check your expenses at the end of the month. Over time you will understand where your money is going and refrain from impulsive buying. 

Pay your debts 

Student loans, automobile loans, and credit cards- all these expenses have high interest. As such, you should try to clear these debts as early as possible, or else the high interest rates and repayments will hover over your head, eating up your hard-earned money. Write your debts in ascending order, irrespective of their interest rate. Pay the minimum amount for all the debts. But for the smallest one, pay as much as possible every month. Once you clear your smaller debt, move ahead to the next ones. 

Think long-term investments 

Investing your money is one of the most sensible financial decisions you should make in your 30s. Educate yourself on all the investment options available at your disposal. Share markets, mutual funds, treasury bonds, etc, are some high-yielding investments. Experts suggest putting at least 70% of your savings into mutual funds, index funds, and stocks to let them grow. 

Use insurance for risk management

Use insurance as a risk management tool. With products such as auto insurance, health insurance, home insurance, or life insurance, you save yourself from getting into a major financial crisis. If you can't bear the idea of filing paperwork or undergoing the long and tedious process of buying insurance, then don't fret. Salty, a high-growth insurance technology company , provides quick insurance when you need it the most. 

Save for emergency

Life can throw challenges anytime. It is only sensible to keep yourself financially ready to deal with the jolt. Create an emergency fund. Decide a minimum amount you should keep in it. Keep adding a set amount from your paycheck every month until you hit the base amount. Then, create incremental goals based on your expenses. According to experts, your emergency fund should be equal to 3 to 6 months of your living expenses. 

Save for your retirement 

While the 20s might seem too early to save for retirement, you should definitely begin saving in your 30s. Once you have paid off all your debts, start saving for retirement. Or better, don't wait to pay your debts. Even putting a small amount aside every month will make a big difference. While creating a budget, determine the amount you can spare to put in your retirement fund. 

The bottom line 

Being smart with money is something that everyone should learn before they turn 30. If you want to be wealthy and lead a safe and secure life, learn these financial lessons and adopt these simple habits to shoulder the full weight of adulthood. Make it a point to strive for these goals from the day you turn 30. 

As you enter retirement, you may feel as though you are already set for life. With all the money you have saved and the pension checks you will be receiving, managing your money should be the least of your worries. However, investing doesn't end with you hanging up your boots. It's a process that continues well into the future. After all, you‎ still need to prepare for any contingency that comes your way and, more importantly, build a fortune you can pass onto the next generation.

Money doesn't keep on flowing when you retire, so it's important to put your savings and pension funds to work. Here's a guide to help you along this path towards gaining financial freedom and stability as well as giving your loved ones something they can inherit.

Set clear financial goals

What will you want to achieve once you have retired? Will you travel the world? Will you move into a quieter and healthier community? Everyone has a clear vision of what they are going to do during retirement, but living the good life shouldn't be the only thing in mind.

Financial stability and building enough inheritable wealth should also have a place in your list of goals during retirement. Your main goal here is to maximize whatever fund sources you have. From this, it will be easier for you to develop a sound investment strategy that works for you in the long run.

Start early with a risk-proof plan

Sound financial planning should start long before you retire. As you enter the last years of your career, you need to take this time to work out your financial plans for after. You may have already saved enough cash in your retirement account, but you need to know how to allocate and spend them on stable investment vehicles.

Sound financial planning should start long before you retire.

Why is it important to plan early? The answer is simple: Inflation. As you save money in your retirement savings, these funds will lose value over time, depending on current and forecasted economic situations. In other words, your retirement money is at the mercy of the economy at-large. You can’t just keep cash in the bank. You should also look for investment vehicles that are guaranteed to grow your cash.

It’s always sound advice to do your research as early as possible, compare potential investment options, and come up with a financial game plan that serves as a hedge against economic volatility.

Avoid getting too aggressive

As a retiree, the world is your oyster! You can do whatever you want with the wads of cash you have. While you may have the freedom to choose an investment option that’s supposed to generate high yields, being too aggressive sets you up for failure.

In today’s financial environment, the best rewards often go towards strategic players — and not players who go all-in. Financial advisers will tell you that as a good rule of thumb, you need only to go for investments that provide enough cash flow to keep you within your goals. The worst thing you can possibly do is to invest all your assets without maintaining enough reserves for future expenses. You know exactly what happens if you put all your eggs in one basket.

Diversify

It matters a lot to know where you invest all your retirement in. If you started early with retirement planning, you may include stocks, bonds, and other securities in your financial strategy.Then again, building a solid portfolio shouldn’t rely heavily on securities as these are highly vulnerable to volatility. It’s sound advice to invest in things you are familiar with, but narrowing your strategy to a single asset class won’t secure you for the long-term.

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Diversification is still an effective strategy for reducing risk and limiting your exposure to economic disruptions. Along with securities, you should also look towards alternative investments that work well against uncertainty. These passive income options include real estate (specifically, commercial properties and rental housing), trusts, and qualified opportunity funds. You can also look into precious metals, variable annuities, and even cryptocurrencies like Ethereum and Bitcoin.

When it comes to securing your future as a retiree, it pays to broaden your investment horizons. Still, before you start diversifying your portfolio, take time to study each vehicle and the ways you can maximize them.

Avoid the “hype train”

When it comes to investments, people will always flock to where influencers go. For someone who is new to investing, keeping up with other investors might seem like an effective way to manage uncertainty. However, putting all your assets in hyped-up stocks will only set you for a very hard drop if these stocks result in bubbles.

As a retiree, you wouldn’t want to jump into the hype-train thinking it’s a sustainable way to maximize your retirement funds. Nothing ever comes out of being too aggressive. You may have a lot to spend in your retirement, but overlooking certain details and making emotional decisions in the process spells trouble. It only increases the risk of losing everything you have as well as everything you are supposed to earn during retirement.

At the end of the day, planning for your retirement helps you build a more stable future even in the midst of economic disruption. To live comfortable well into the later years of life requires foresight, wisdom, and sound planning.