It’s back to school time in many parts of America. Whether you are a new teacher entering the field, or you have been in the field for a long time, this is the perfect time to assess your financial situation. Here are some savvy financial tips to consider.
Tip 1 – Check on Retirement Plans
It may sound crazy, especially for new, young teachers just entering the field, but now is the perfect time to learn what retirement plan options are available to you from your employer. For some teachers, their employer may be a unified school district, for others it may be a private corporation. Either way, be aware of what retirement plan options are available to you. You most likely have one or more of the following options: a traditional pension plan, 401(k), 403(b), or other plan type. All teachers should know your plan type and know how much you are contributing. You also need to know how it is invested. Are you diversified enough? What’s your personal level of risk?
Tip 2 – Know Your Cash Flow
Teachers get paid on a variety of schedules. Some opt for payment only during the school year, others have their pay pro-rated over twelve months, and some are only paid while on contract. Regardless, it’s good to have an annual reminder to review your budget, your goals, and how much you are investing, saving, and spending. A new school year is a great the time of year to sit down and make sure you are paying yourself first, saving enough for retirement, and not allowing “lifestyle creep” to take a bigger bite out of your income. Lifestyle creep is when your spending slowly increases over time without you being aware. You must know your cash flow.
Tip 3 – Learn from a Pro
As a teacher, you are a professional in your field. However, personal finance may not be your thing. If it’s not, hire a pro. Seek out a financial adviser to help you and consider a fee-only planner that works hourly. Make sure you like the person and keep in mind that it is a good idea to have an annual financial check-up just like you have an annual doctor’s visit, or dental check-up. An hourly, fee-only planner can work with you over time to help keep your goals front and center and help keep you on target for reaching those goals, and for reaching retirement.
As an independent CERTIFIED FINANCIAL PLANNER™, I can help you make financial decisions for your new school year. Contact me and let’s get started. #talktometuesday #getstarted #HowIcanHelpYou #GetHelp #Hireaplanner #summervacation #vacation #CFPPro #savemoney #retirement #backtoschool