How not to become a bag lady

It’s easy to become overwhelmed by the prospect of managing your financial future. Many women worry about ultimately being unable to support themselves or their families. While it is both common and reasonable to harbor this fear, it is important to remember that measures can be taken to eliminate “bag lady” from your future.

If you want to ensure your financial future, the first step is to get a handle on your financial present. Take the time to become familiar with and to assess your current financial situation. Figure out what you own versus what you owe. Think about what kind of income you can depend on. Evaluate your expenses. Ask yourself how much money you need to support your lifestyle.

Now, you can start to think about the future. Next step: Make a plan. During this process, be willing and prepared to make adjustments, as needed.

Start by making a model of your future cash flow with the help of your accountant or financial advisor. Project your life expectancy, as expenses and monetary needs will vary according to age. Do you want or need to help your children financially? How important it is to you to leave a legacy? The objective is to determine how long your money will last. Ask the question: Will my money run out?

If the answer is yes, make some changes to your plan NOW. You may need to lower your expectations. Begin thinking about ways to increase your income. Consider downsizing or selling some assets. Think about the right time to take social security. Fine-tune your plan until it is realistic, manageable and effective.

The most important component to ensuring that you will NOT become a “bag lady,” is to address your financial situation before it becomes a problem.

Learn about the Wealth Preservation Solutions Estate Planning and Asset Protection Process.