How To Build A Strong And Secure Financial Future

By Victor Ochieng

A report released by the Lincoln Financial Group indicates that many Americans aren’t doing quite well when it comes to making ends meet.The Radnor, a financial company based in Pennsylvania, recently released a 2017 study, entitled, “Financial Focus: Goals and Reflections of Today’s Consumer.” In the study, they looked into some of the short and long term financial goals that Americans can employ to secure their financial future, as well as some of the forces that are barring them from realizing such goals.

Heavy Debts

A whopping 24% of Americans, about 1 out of every 4 Americans, says they’re not doing well financially. Their biggest challenge is the burden of debts, with 42% of this group admitting that debt is a huge problem to them. Looking into their financial forecasts, up to 45% of this group don’t believe they’ll be able to clear their debts.

The study, however, revealed that most people who are scared of their financial future don’t have financial goals. According to the study, 48% of those who say they’ve got financial goals believe they’ll be in a better financial standing within the next four years, compared to only 12% of those with no financial goals. Individuals making financial resolutions at the turn of the year are also making progress, with 72% saying they’re progressing with their resolutions, which, in most cases, includes some financial objectives.

Those Taking Financial Actions are Most Satisfied

The study found out that most of the individuals who take specific actions to address their financial challenges are the most satisfied and are more confident and feeling secure. For example, 52% of individuals who make financial resolutions have a retirement plan, 45% have secured life insurance coverage, and 44% have one or more investment accounts. When financial times are difficult, 31% of the group skipped their vacation plans, and 60% said they never skipped their savings.

“Those who are progressing toward their goals and resolutions are first and foremost working to ensure they have a solid foundation to build upon,” Dick Mucci, president of Group Benefits at Lincoln Financial, said in a press release. “Putting some extra money toward debt, savings, and insurance coverage certainly pays off in the long run—and those who have financial goals understand this.”

View on Retirement Savings and Providing for Family

Many of those interviewed (35%) reported to having some fear when it comes to saving for retirement and providing for their families. In fact, for Gen X, the percentage shot to 47%. In general, 27% fear when it comes to the prospect of providing for their families, with the number hitting 38% for younger millennials.

“The things that excite and scare us in regards to money are the same for a reason—they impact one another and are critically connected,” said Mucci. “Without the right protections in place, an accident or illness can derail retirement savings. But if you focus on the outcomes you want and ensure you take the steps to get there, you’ll wind up in a good place.

All-in-all, it’s important for everyone to make retirement savings. In fact, those who have access to employer sponsored retirement plans shouldn’t hesitate to take them, provided they’re fair.

Turning Your Financial Life Around

There are no shortcuts to securing your financial future. That means you have to be ready to work hard to make things right. Ensure you take advantage of workplace benefits if available; don’t sacrifice your savings for anything; start an emergency fund and remain loyal to making savings; and open a savings account in a different bank account that you don’t have easy access to. Equally important is ensuring that you live within your means and work with a budget.