Gordon Graham
Category: Public Safety
Gordon Graham here with Today’s Tip from Lexipol. Today’s Tip is for anyone in public safety, from new hires to those approaching retirement. Money woes can be a huge source of stress, no matter where we are in our careers.
Three financial worries that may keep us up at night are lack of emergency funds, existing debt, and lack of retirement savings. Developing a few good financial habits can help put those worries to bed.
Don’t delay. Retirement will come sooner than you think.
First, get an emergency fund in place as soon as you can. A thousand dollars is a good start, although three to six months of expenses is a better goal. That thousand dollars should cover emergencies, such as an unexpected car repair or a root canal. But remember: Buying concert tickets or the latest cell phone are not emergencies. Neither is taking a vacation.
Second, whether your debt is in the form of credit cards, car payments, or student loans, pay it off and don’t add any more. Try tackling the smallest debt first. Then add the amount you were paying on that one to the payment on the next largest, and so on.
To stretch your earnings even further, eliminate the pricey lattes and cut back on eating out. Ditch streaming services and other subscriptions you rarely use. Add those savings to your debt payments. You’ll be surprised at how fast you can pay those balances down. Every debt paid off reduces your financial stress.
Once your emergency fund is in place and your debt burdens are under control, start saving 15 percent of your income for retirement. Take full advantage of employer matches to amounts you save in available deferred compensation or 401K accounts. Don’t delay. Retirement will come sooner than you think.
You’ll be amazed at the difference in your stress level once you get your finances in order and start saving for retirement.
And that’s Today’s Tip from Lexipol. Until next time, Gordon Graham signing off.
