How to approach money management
The average U.S. consumer is inundated with financial information and tools as they prepare for their financial future. An Internet search of the words “financial planning” generates millions of hits. With all this financial knowledge readily available, we can assume most people are taking steps to get their financial house in order, right?
Wrong. Many people tend to avoid setting financial goals, and even if they do, they tend to focus on a specific one like saving for college or retirement. However, they often fail to look at the entire picture, including weaving in their personal values into the equation, which can be critical to building a personalized financial program. Adopting a holistic approach to managing your finances can help link your decisions about money with matters of the heart.
Another common mistake is making a financial decision without understanding its impact on other financial issues. Many financial choices overlap with each other. Paying attention to estate protection, for instance, will impact the resources available to address other needs and desires, such as vacations or giving to charity. Financial professionals can help you navigate these decisions.
What are some other areas to consider? Here are some ideas from Thrivent Financial:
Go beyond investing. Considering mutual funds and other investment products in money decisions is only one option in a sea of other financial tools.
Thinking that only the rich should pay time and attention to managing their finances. It’s important to adopt a financial philosophy regardless of monetary worth.
Believing that it can wait. A well-developed financial program grows with time, so getting a jumpstart on retirement planning at a young age works in one’s favor. Also, crises can happen at any age and financial preparation will help a person work through the unexpected.
Neglecting to reevaluate financial decisions periodically. Reviews should be done on an annual basis. Life events— like marriage, childbirth, job changes or home ownership — should be signals to revisit financial goals.
Plenty of financial information is out there, so the more Americans can learn, the better. Building financial knowledge, getting started early and seeking help when needed will help make personal money management possible and position individuals for long-term success.
This article was prepared by Thrivent Financial for use by Pottstown, John A Ungerman. He has an office at 2879 E High Street in Pottstown and can also be reached at 610-970-4740.
About Thrivent
Thrivent is a not-for-profit financial services organization that helps Christians be wise with money. As a mission-driven, membershipowned organization, it offers its more than 2 million members and customers a broad range of financial products, services and guidance to help them obtain a life of contentment, confidence and generosity. Thrivent and its subsidiary and affiliate companies offer insurance, investments, banking and advice over the phone, online as well as through financial professionals and independent agents nationwide. Thrivent is a FORTUNE 500 company with $134 billion in assets under management/ advisement (as of 12/31/18). For more than a century it has helped Christians make wise money choices that reflect their values while providing them opportunities to demonstrate their generosity where they live, work and worship. For more information, visit Thrivent. com. You can also find us on Facebook and Twitter.
THRIVENT IS THE MARKETING NAME FOR THRIVENT FINANCIAL FOR LUTHERANS. Insurance products issued by Thrivent. Not available in all states. Securities and investment advisory services offered through Thrivent Investment Management Inc., a registered investment adviser, member FINRA and SIPC, and a subsidiary of Thrivent. Licensed agent/producer of Thrivent. Registered representative of Thrivent Investment Management, Inc. Advisory services available through investment adviser representatives only. Thrivent.com/disclosures.