Teachers need financial planning as much as anyone, especially young professionals just starting out in their chosen career. While many new educators are thrilled to have gainful employment doing what they went to college to learn, it’s also important to think beyond the present. Financial planning for the future is essential for every teacher.
Reachable Goals for Young Professionals
Many new teachers think they don’t have the resources to meet with a financial expert, but you absolutely do. In fact, this is one of the best times in your life to get support if you want to be financially independent and confident about your future. Some of the questions you might discuss:
- What are your short-term goals?
- What are your long-term goals?
- Should you open a 401(k)?
- Is a savings account your best option?
- Should you rent or buy?
- Should you merge finances with someone?
- Do you have a plan for unemployment or long-term illness?
- What employer benefits should you accept?
Whether you want to save up to pay for a home, car, wedding, or pet, identifying your dreams and the associated costs is something you and your financial advisor can do together.
Improve Financial Literacy When You’re Starting Out
No one is expected to know or understand financial planning terms and their meanings without doing a little homework. Improving your learning curve with the help of a trusted financial advisor will help you learn where your money should go and where you are likely to see the best results. You can talk about the following:
- Most viable investments.
- When and how to pay off student loans.
- A plan to minimize all debt.
- How to establish the lifestyle you want.
- Improve credit score.
The goal, above all, is to develop financial stability while also managing growth. That starts with fully understanding your financial situation and balancing income with debt, expenses, and assets, so you have a comprehensive financial plan.
Smart Investments for Young Professionals
When you are getting a regular paycheck, it’s nice to have income. You may feel like it’s fine to live one month to the next with the money you have. Making investments and a complete financial plan from the start of your career as a teacher though is the smart way to protect yourself financially both now and later.
Even if you’re at the bottom of the ladder when it comes to educator pay grades, eventually you will put in your time and work your way up. Salary and benefits will increase accordingly. If you get used to making deliberate investments now and contributing to your savings, it will be easier to keep those numbers going and increase them as your earnings change.
Creating Financial Safety for All Teachers
New teachers may feel like they don’t have much breathing room when it comes to developing the lifestyle they want and the savings they’d love to have, but financial planning can get you there. Prioritize your financial future by working with an expert to learn how you can contribute to your own savings, what benefits will increase, and some of the best places to put your money. Schedule a consultation with Hollander Lone Maxbauer. Contact us at our Southfield, MI, location.
