As we get older, it’s easy to look back and see where we could have made smarter financial choices, especially when it comes to retirement. Maybe you didn’t take full advantage of your 401(k) match, or you didn’t build that emergency fund when you had the chance. The good news? You can still take control of your financial future.
Live Below Your Means
Your recent raise might feel like permission to upgrade your lifestyle, but think twice. Avoid lifestyle creep by comparing your expenses to your income and resisting the urge to increase spending just because your paycheck grew. Instead, channel that extra income toward savings, investments, or paying down debt. The gap between income and expenses is where wealth-building happens.
Build an Emergency Fund with a High-Yield Account
An emergency fund provides a financial buffer for unexpected expenses, like medical bills or car repairs, so you don’t have to tap into retirement savings. A high-yield savings account can help your emergency fund grow more efficiently than a traditional one. For example, some online banks currently offer interest rates around 3.50% APY with no monthly fees, such as Ally Bank’s Online Savings Account. This allows your savings to earn more over time while remaining accessible when needed.
Avoid High-Interest Debt
Credit card balances, high-rate car loans, and overleveraged mortgages can derail your financial goals fast. These debts drain your income with compounding interest and limit what you can save. Prioritize paying them off and avoid taking on new debt unless it’s low-interest and aligned with your financial plan
Start Investing in Retirement Accounts Now
The earlier you invest, the more time for your money to grow. Whether it’s a 401(k), IRA, or Roth IRA, start as soon as you can and aim to contribute consistently. If your employer offers a match, don’t leave that free money on the table.
Budgeting Is the Real MVP
It’s hard to make smart money decisions when you don’t know where your money is going. Keeping track of what you earn and what you spend gives you a clearer picture and more control. When you have a solid budget, you’re less likely to panic during market ups and downs because you already know what you can handle. Your financial advisor can support you with this. Being aware of your spending habits helps you stay consistent, build confidence, and stick to your long-term goals.
At Anchor Wealth, we offer personalized coaching to help you understand your options, from planning for life’s milestones to managing income limits and tax implications. We take an educational approach, helping you make informed, confident decisions at every step. Let’s build a financial plan that works for your life.
By Shane Stuart, Wealth Advisor