Northwestern Mutual: 5 Building Blocks for Financial Success

Building a solid financial future can set people up for success later in life, no matter what their goals may be, from home ownership to paying for college and exploring different types of investments. Here are some important things to think about when planning for financial success now and in the future.

Budgeting and Saving

Budgeting and saving are two key building blocks that go hand in hand. Consider setting and tracking a regular budget that factors in essential expenses like:

• Rent or mortgage
• Phone and internet
• Subscriptions (like streaming services and gym memberships)
• Food (grocery shopping and dining out)
• Childcare costs
• Monthly insurance and healthcare policies

Planning out a budget could make it easier to assess monthly costs and set aside additional money for savings, such as a rainy-day fund or a larger goal.

Making a Financial Plan

Assembling a more significant financial plan is another helpful aspect to ensure financial success. Think about larger financial goals. These vary for every person, but might include:

• Purchasing a home
• Paying for college tuition
• Investing for a big future expense like retirement
• Building an emergency fund

Setting a financial plan can help individuals strategize for longer-term expenses.

Being Intentional About Investing

Investments are a great way to build wealth over time. While investments tend to rise and fall, over the long term, markets have always increased in value. That’s why a diversified portfolio is one of the best ways to grow money for future goals.

Not Drowning in Debt

Debt can be a financial tool, but’s it’s important to manage it. While having and using credit cards can be a helpful way to build a solid financial profile, being careful about not taking on too much debt can help to keep a healthy credit score and avoid any penalties for late or missed payments. When using credit cards or taking on any kind of debt, individuals should be mindful of payment due dates and ensure they make payments on time.

Setting Short and Long-Term Goals

Lastly, having a goal-oriented mindset can help when working to achieve financial success. Keeping track of short and long-term goals is a great way to have both an immediate and long-term vision of a healthy financial future.

Additionally, this approach can help individuals plan for the future while still enjoying the day-to-day and using money for life’s needs and wants. After all, a successful financial future should involve both the essentials and more enjoyable activities and experiences.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company (NM) and its subsidiaries in Milwaukee, WI.

Media Information:

Source: Northwestern Mutual

Contact: Don Klein, 1-800-323-7033