4 Things To Include In Your 5 And 10 Year Financial Plans

Everyone should have a financial plan, especially when they are married and have children. But even single people can plan for the future and protect their interests by careful planning of their financial assets. Here are four things that should be part of your five-year or ten-year financial plan.

Education and Career

Depending on where you are in life, you might be thinking about college or graduate school to earn a degree that will enhance your marketability as an employee. If you have a job that doesn't require higher education or if you already went to college, then you may want to set aside funds for when you make a future career move, as funds will be needed to cover any gaps between one job and the next as well as professional development. In addition, if you have kids or plan on starting a family, setting aside college funds for their education now is a great way to prepare for the future.

Transportation

Most people upgrade their vehicles every few years. Some drive a car for at least five years, so it is a good idea to start saving for your next car, whether new or used. You can avoid a hefty deposit or a monthly car payment by having money set aside to pay cash for part or all of your next car's cost. Driver's insurance costs are likely to go up as well, and having funds available to offset the increased rate will help your budget.

Investments

Consider a short-term or long-term investment program that you can contribute to each month. Even small amounts of $100 will soon add up to a sizable sum with interest. Your investment accounts will come in handy for buying a home or funding a family vacation when the time comes. Over time, the interest will compound to increase your investment even more.

Retirement

It's never too early to think about retirement. Many investors start planning for their senior years when they're in their twenties. Retirement is not cheap, and people are living longer, so it makes sense to start saving now for your golden years following retirement from full-time employment.

Consult a Financial Planner

To learn more about developing financial goals for the future, consult a financial planning expert. A professional can review your income and expenses and discuss your financial goals to help you set up a plan of earnings, savings, and investments that will meet your needs.

Don't let rising costs and emergency needs catch you unprepared. Set up an affordable financial plan that will provide security and comfort for the rest of your life.