By Matthew M. Glatt, CPA – Founder and CEO of FLP Financial Group, LLC
Are you in control of your family’s financial future? Are you paying attention or taking a backseat to saving for your retirement? If Social Security or your company’s 401(k) plan are your only avenues for retirement saving, you may be underfunding your future.
Mismanaged Government Spending
Our country is in debt. Serious debt. The United States has 19.3 trillion dollars in federal debt according to Fiscal Year 2017 government data and that number has historically been getting higher every year. Government spending is out of control, and the future of social security is wholly uncertain. Nationally, we are in a budget deficit, meaning we are spending way more than we are earning as a country.
If government spending continues at the same rate, the money we are paying into social security now may be put towards paying down the national debt and not be available to us in the future. The federal government has turned social security into an unfunded liability that cannot entirely be counted on as your retirement safety net. We have to carefully consider if social security benefits will be enough to fully support ourselves in retirement.
Avoiding A Personal Budget Deficit
Every American has the right to be frustrated by this reality and eager to not repeat the same mistakes in our personal lives. So you must ask yourself this question, are you a responsible and capable CEO of your family’s finances or would you fire yourself if you fully evaluated the financial situation you are currently in? Are you thinking strategically about your future and saving accordingly? If you are unsure, you may be making the same financial mistakes as our government.
Take a second to consider if your personal budget is in a deficit. Mismanaged spending in our own lives is similar to the government mismanaging the federal budget. Are you spending more than you earn? For most people, the answer is sometimes. Unforeseen expenses can wreak havoc on even the most prepared budget, but actively thinking about ways to reduce spending can lessen the stress those unexpected costs can create.
In order to preemptively navigate these financial hazards, we review each client’s income and spending through our Spend with C.A.R.E. program. Through our trademark program we capture, categorize and analyze your expenses to put you in the driver’s seat of your financial future.
Saving Before Spending
What steps are you taking to manage your spending and save for retirement? Our Back 2 Basics ebook is filled with tips to identify spending priorities and improve your financial well-being. One important tip is the idea of paying yourself first. This means putting money away for your future, before spending money on anything else.
Like the government underfunding social security, if we underfund our retirement plan the money is not going to be around when we need it. Not paying attention to our retirement account is setting it up for failure. In addition, the amount of your income diverted to a retirement savings account should increase as you get older and, ideally, make more money.
Properly funding your plan is essential and it starts with making sure your retirement savings are diversified. Are you solely or mainly relying on your company’s 401k to fund your retirement? If so, pause and take a second to think about the opportunities you are missing out on.
Get In The Driver’s Seat
You are in control over your life. It is time to prepare yourself and your future by really looking at your spending and saving habits. FLP Financial can help. Our Back 2 Basics ebook is available to help kick-start your way to financial health. Reach out to schedule a consultation with me at [email protected] or call the FLP Financial office at (844) FLP-PLAN.