A recent study found that only 21 percent of Americans ranked “investing effectively and tax efficiently” as their top monetary priority. Since we all have numerous financial obligations that can prevent investing from being a financial importance, you may have brushed off investing as well.
Here’s why investing should be one of your top financial priorities, and how you can make it a reality:
You can utilize an emergency fund
Many of the people surveyed were wary of investing because of surprise expenses that could crop up. They’re at least partially correct, because if you don’t have cash on hand for an emergency, it can cause plenty of damage (like when you treat a 401k account as a loan).
That doesn’t mean having cash for an emergency and investing have to be mutually exclusive. By first aiming to create an Emergency Fund with 6-8 months of living expenses, you still keep investing a priority while also preparing for road bumps.
Focus on the long-term
Many Americans also mentioned that their short-term priorities caused investing to be put on the backburner. While it can be tough to focus on financial priorities that are years (most likely decades) down the line, viewing investing through a long-term lens is essential for your success.
For instance, while retirement might not seem like a priority, if you look at how easy it is to start preparing now (thanks to compound interest), it will likely be bumped to the top of your priority list.
Using an advisor to balance your financial priorities
Mom. Retiree. Divorcee. At LexION Capital, we know that you’re more than just a number, and that you have multiple financial priorities to juggle in life. That’s why work with each client individually to create an investment plan that can effectively meet their complex goals and needs. If you like to learn more, schedule a conversation with one of our fiduciary advisors today.
