What’s Your Definition of Financial Success?
Paying for Junior’s college education? Affording a vacation home? Retiring at age 55? Getting a good night’s sleep?
A recent survey found that 39% of Americans deﬁne ﬁnancial success as being debt-free.* Although that’s an admirable goal, it’s important to also focus on saving for long-term goals, such as education and retirement.
Start by deﬁning what ﬁnancial success means to you.
Financial freedom. Being debt-free certainly delivers its own level of ﬁnancial freedom. But building and maintaining a solid credit rating through borrowing and repaying money can also lead to ﬁnancial success. For example, a good credit score may help you get approved for a lower, more affordable interest rate on a mortgage to achieve the dream of homeownership. Making room in your budget for investing allows you to beneﬁt from the long-term effects of compounding your savings in order to secure a ﬁnancially ﬁt retirement.
Peace of mind. If your idea of ﬁnancial success includes sleeping peacefully at night without worrying about debt or your investments’ volatility, being true to your tolerance for risk comes into play. Consider taking a risk tolerance quiz to see where you stand.
Worthwhile goals. Building up a hefty rainy day fund, starting a successful business, paying for your children’s higher education and saving for retirement are all important ﬁnancial goals signifying success when achieved.
A Successful Arrival
Need help getting started? We can help you deﬁne your goals and provide tools you need for success. Contact us today.
*Source: TD Ameritrade Holding Corporation.