To help consumers know where to begin when saving money, the Tennessee Department of Commerce & Insurance’s (TDCI) Securities Division shared basic steps to develop a financial plan and set financial goals.
“We understand that with a range of investing options available, starting a financial plan can seem like a daunting task,” said Frank Borger-Gilligan, TDCI’s assistant commissioner for securities. “It’s important to remember that developing achievable saving and investing goals can help you on your road to financial freedom and security. By taking the time to create a personal plan, you can better position yourself to afford the kind of lifestyle you want.”
The TDCI Securities Division offers the following guidelines to help Tennesseans develop a financial plan and set financial goals:
• Figure your net worth. Your net worth is anything you own (including money you make) minus your debts.
• Estimate your income and expenses.
• Review your personal debts. A debt is a bill you have to pay because of money previously borrowed like a car payment or credit card payment. An expense is a bill for a service or good you receive like gas or electricity.
• Balance your income and expenses. How much money is left?
• Identify your short-term goals. Short-term goals may include things such as building an emergency fund, paying off a debt or buying a car. These goals are usually something you want to accomplish within the next few months or years.
• Identify your long-term goals. Long-term goals may include things such as buying a home, paying for a college education or saving for retirement.
• Determine what you have to save to reach your goals.
• Implement your plan. Be sure to review your plan from time-to-time to determine whether you are still on track.
• Before making any decisions with your money, ask questions, make sure you understand the risks, and contact the Tennessee Securities Division for detailed background information about those who sell securities or give investment advice, as well as about the products being offered.
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