Page 12 - Indulge August 2017
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Financial Planning Budgeting and talking about money can
be difficult. The following pages will help
you get a handle on your finances.
If your piggy bank of savings seems PfylisonaahuWnbaononchuuciaylntirdagel? CEO of The Athena Network and
more like a starving piglet than a By Linda Doell Good Life Advisors of the Lehigh
plump porker, you’re not alone. Valley. She encourages people
to become more knowledgeable
Consumer Federation of about their finances.
America data shows that less
than half of all Americans save If you’ve never saved before,
just 5 percent of their incomes the first step is to figure out
and another 23 percent of what you spend money on each
people save nothing at all. month and from there create a
budget. A good way to do that is
That means that should a track your spending for a month.
financial crisis happen, chances Anything you buy — like a daily
are good those people won’t be cup of coffee — or pay money
able to stay afloat. It doesn’t take toward like a car payment, write
much to get into crisis either. A it down.
job loss, a car or house repair not
covered by insurance, or even a “Most people have no idea
pet’s medical expenses can add what they spend,” Biggs says.
up to more than what comes into “You’ll often find areas in your
a home each month as income. spending that you waste money
on. … Once you have identified
“Having savings is the an area you could trim, start a
cornerstone to wealth, it gives systematic saving plan where you
you power,” says Brett R. Biggs, have a fixed amount transferred
vice president/investments into a separate account. After a
at The Biggs Group of Janney while you won’t even notice it.”
Montgomery Scott in Bethlehem.
“By wealth, what are we really He says having a financial
talking about? It’s not just having plan for your future is as
a ton of money, it’s having the important as using blueprints
ability to do what you want when when building a building.
you want. Without savings, when
life dictates to you a bad situation “You wouldn’t build a building
you can’t control that situation.” without a plan, why would
you build your financial future
A common rule of thumb for without one? Investments are
a rainy day savings fund is to the tools used to build off of a
have six months worth of living plan. You need to understand
expenses in savings — in case what tool you need before you
you are unable to work for six break ground.”
months due to illness, a job loss
or some other catastrophic event. Biggs adds that if your
employer offers a match on a
“While this is not feasible for 401k contribution, make sure to
many people it is a good idea to take advantage of that tool.
have enough to live in case you
lose your job or can’t work for at “I can’t tell you how many
least a few months,” Biggs says. people we run across that don’t
take advantage of the extra
A time of crisis is not the money that your company is
time to make big financial willing to give you for free,” he
decisions or learn about says. “There is no investment
handling money, says Lisa we have that can multiply your
DeStein Strohm, founder and money instantly with no risk.”
12 | indulge • August 2017
