How do I create a long-term financial plan?

Q: How do I create a lifelong finance plan and how much money will I need for all of those things? Emergency fund...

Posted: Dec 21, 2017 4:22 PM
Updated: Dec 21, 2017 4:22 PM

Q: How do I create a lifelong finance plan and how much money will I need for all of those things? Emergency fund, wedding, buying a house, retirement, college savings for my future kids (how much do kids cost?), elder care for my parents (god forbid, but just in case)? --Delilah

Life is full of big-ticket purchases: moving expenses, school tuition, weddings, honeymoons, buying a house, kids, retirement ... the list goes on and on.

You can't plan for all these things, but you can decide what savings goals matter to you. Add them as line items to your weekly budget, and make a point of sitting down once a year to craft a financial plan for next year's goals and expenses.

Related: How can I balance my finances?

Your first goal should always be saving for retirement -- even beyond the short-term expenses (vacations or other big purchases) that may feel more pressing year to year, according to Carrie Schwab-Pomerantz, senior vice president at Charles Schwab.

Retirement may not sound as exciting as buying a home or funding a honeymoon, but it's important enough to warrant the No.1 spot on your priorities list every year.

As Schwab-Pomerantz points out, retirement is always going to be expensive -- and it's always going to be up to you to prepare for it. People often prioritize short-term expenses instead, or they decide to save for their children's future before they save for their own.

"There're no scholarships for retirement," Schwab-Pomerantz says.

Her point: many of your circumstances could change. You could decide you want a small wedding. Your child could get a scholarship to college. But you'll still need money when you retire.

Schwab-Pomerantz then recommends reevaluating your budget and financial plan every year, to decide what your next priorities should be.

Take the time out of your holiday schedule to make sure you're adjusting the amounts you're saving and spending. Have a bit more wiggle room this year? Up your contributions to your savings. Need to tuck away some money for a new car? Cut back on money spent on other things.

And remember: There's no "one amount" to save for any of these goals. Instead, Schwab-Pomerantz recommends setting aside 10% of your income as savings. Adhere to that even as you earn more money with a bonus or a new job -- you never know when you'll need it.

"You know that your life is going to get more complicated," Schwab-Pomerantz says.

Have a money question for Broke No More? Ask us here to be included in a future column.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 314710

Reported Deaths: 7254
CountyCasesDeaths
DeSoto21646260
Hinds20369416
Harrison17949309
Rankin13643278
Jackson13450246
Madison10113217
Lee9986174
Jones8384163
Forrest7689152
Lauderdale7198240
Lowndes6403148
Lamar623686
Lafayette6203119
Washington5341134
Bolivar4802132
Oktibbeha462998
Panola4596107
Pearl River4519146
Marshall4450103
Warren4393121
Pontotoc420872
Monroe4115133
Union411176
Neshoba4031176
Lincoln3969110
Hancock379586
Leflore3498125
Sunflower336290
Tate334784
Pike3327105
Scott316274
Alcorn313368
Yazoo311770
Itawamba300577
Copiah297465
Coahoma295579
Simpson295388
Tippah288768
Adams286982
Prentiss280060
Marion269380
Leake268473
Wayne262841
Grenada261587
Covington259881
George248148
Newton246862
Winston227581
Tishomingo227067
Jasper221148
Attala214473
Chickasaw208057
Holmes189174
Clay185554
Stone182833
Tallahatchie178941
Clarke178080
Calhoun170932
Yalobusha164638
Smith162534
Walthall134245
Greene130633
Lawrence128724
Montgomery127142
Noxubee126734
Perry126338
Amite123142
Carroll121829
Webster114532
Jefferson Davis107133
Tunica105726
Claiborne102430
Benton100025
Humphreys96733
Kemper95828
Franklin83923
Quitman81116
Choctaw76418
Wilkinson67531
Jefferson65728
Sharkey50217
Issaquena1686
Unassigned00

Alabama Coronavirus Cases

Cases: 540083

Reported Deaths: 11038
CountyCasesDeaths
Jefferson798481529
Mobile41283809
Madison35157506
Tuscaloosa25925455
Shelby25302249
Montgomery24723593
Baldwin21411310
Lee15993172
Calhoun14574319
Morgan14425280
Etowah13925353
Marshall12280225
Houston10648282
Elmore10158206
Limestone10070151
St. Clair9948245
Cullman9768194
Lauderdale9460243
DeKalb8865188
Talladega8341176
Walker7261278
Autauga7005108
Jackson6840112
Blount6773139
Colbert6322135
Coffee5581118
Dale4877113
Russell445738
Chilton4373113
Franklin426382
Covington4138118
Tallapoosa4044153
Escambia394877
Chambers3596123
Dallas3569153
Clarke351561
Marion3140101
Pike312077
Lawrence303098
Winston275873
Bibb264764
Geneva254178
Marengo249865
Pickens234862
Barbour232056
Hale224078
Butler219169
Fayette212862
Henry189943
Cherokee184845
Randolph182542
Monroe178141
Washington167839
Macon161350
Clay157257
Crenshaw153557
Cleburne149641
Lamar143336
Lowndes140653
Wilcox127430
Bullock123242
Conecuh110829
Coosa109228
Perry107826
Sumter105032
Greene92634
Choctaw61024
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