Want to save and invest but don’t know where to start?
You may think your journey starts and ends with an investment plan. While that’s a key piece to the puzzle, it’s equally important to consider your own money story: What is your enough? And how can you make wise financial habits to help you get there?
Answering these questions at the outset can help you make informed choices with money, ensure your values and plans are being put into action, and ultimately guide you to leading a life of confidence, contentment and generosity.
Building wealth starts with little actions and following intentional steps to help you identify where your money is going.
Save first, spend second
Once you’re confident that you’ve been able to cut expenses, set up a monthly investment plan in which money can be automatically withdrawn from your bank account or paycheck. You could consider opening an Individual Retirement Account (IRA), take advantage of your employer’s 401(k) plan if offered, or set up an automatic investment plan that withdraws a set amount from your bank account each month.
Set up (and stick) to a budget
Once you’ve identified a few areas to free up money, figure out how much you want to save and design a budget that will allow you to meet that target. You can start with a modest goal – say $50 a month – and then work your way up. Remember, if you’re serious about building your wealth, you must consider all possible ways to save.
Allocate “found money” into your investment account
If you’ve paid off student loans or a car payment, invest that “found money” instead of spending it. You can apply the same concept to a salary bonus or tax refund in an effort to build your savings.
Follow the dollars
Closely review your expenses to track every dollar you’re spending – while some bills like rent or mortgage, transportation, etc. are locked in, you may have other areas where you can free up money.
Money is a tool
While following the above steps is important, keep the bigger picture in mind. Take this as an opportunity to figure out how money can be a tool for living out your faith, expressing your generosity, and contributing to your community.
While all of this takes a little extra work, you’ll gain a holistic view of your finances and can start taking small – but meaningful – steps on your wise with money journey. If you need additional support along the way, consider meeting with a financial professional who can help you troubleshoot these steps as you progress in life and in your career.
This article was prepared by Thrivent Financial for use by Rapid City representative FR-Calvin Sievers. He has an office at 2210 Jackson Blvd. in Rapid City and can also be reached at (605) 399-9373.