Financial planning is a crucial part of adult life, yet 40% of Americans have never had a budget.
Sticking to a budget can help prevent you from falling on hard times. It can also help you achieve your goals in life.
However, contrary to what most people are thinking, financial planning and budgeting aren’t just for retirement. It’s not just the practice of foregoing the occasional latte.
Making a financial plan can give you peace of mind and, eventually, the life you’ve always wanted.
Why Is Money So Stressful?
People who have a financial plan are two times as likely to meet their financial goals as those who do not have such a plan, yet two in five people have never had a budget. More than one in three people spend more than they save, and two in three say they easily overspend when using a credit card.
But it’s not all bad news. 48% of Americans say they save at least 5% of their income, 65% say they have emergency savings, and 79% are either debt-free or they are actively paying down their debt.
Of consumers who report having a budget:
- 62% say they are in control
- 55% say they feel confident about their finances
- 52% say they feel secure about their financial situations
Of consumers who do not have a budget:
- 19% feel out of control with money
- 18% are constantly worried about their finances
- 17% report being stressed about money
When it comes to retirement, even though many people are saving, they still don’t know why or how much. In fact, 75% of Americans aren’t sure how much they should be saving, while 40% of those with retirement savings have no idea how their money is allocated. It’s no wonder the thought of budgeting and saving money is so stressful for so many people – even when we know that we are supposed to be doing it, we still often have no idea how.
Setting Financial Goals And Sticking To Them
If you are at a point in life where you are able to save money, congratulations!
Now, it’s time to ask yourself why you are saving money in the first place. Sure, everyone should be saving money for emergencies. But once you get past your emergency savings, there are all kinds of other savings you should be doing, from retirement to enhancing your quality of life.
So how do you want to live and what financial goals can you set to get to that point?
Sometimes, setting financial goals starts with reinventing yourself.
What kind of career would get you out of bed every day? How would you spend spare time if you had it? Is there something you would like to learn or a new educational goal you’d like to meet?
Last year 39% of Americans said they wanted to save more money and for many, that means making a career change.
Setting goals for yourself helps you to understand what steps you need to take to meet them. 97% of parents say they want to pay all or part of their child’s college tuition, yet few understand just how much money that is or how much they should be saving right now in order to accomplish that goal. Currently, only 27% are on track to meet those goals.
Setting goals and then figuring out what action you need to take now in order to achieve them is critical.
Once Basic Goals Are Met, Make Your Life Worth Living
The main reason for financial planning is that someday you will want to be able to live life on your own terms. The better your financial planning, the sooner you will be able to live the life you want because of it.
Once you have enough to cover all of your financial goals, it’s time to figure out how to buy back some of your time. There are apps and tech gadgets that can take over your daily tasks like cutting the lawn, cleaning the pool, and hiring a handyman. Using these services can help you feel like your hard work has been rewarded when you are able to do the things you want instead of having to do the things that need to be done.
Financial planning is an important first step toward the life you want. Learn more about freeing up time, reducing stress, and living your best life through financial planning below!
The post Making A Financial Plan: How to Set Financial Goals To Live Your Best Life appeared first on Dumb Little Man.
Single male billionaire seeking woman for long term relationship. Must be over 20, optimistic, and open to being shot into space.
Yusaku Maezawa is looking for love in some unusual places. The 44-year-old Japanese fashion entrepreneur has opened worldwide applications for the role of his “life partner,” and to sweeten the offer he’s packaged himself with a round trip to the literal Moon, courtesy of SpaceX. It seems having a net worth of $2 billion lets you make Frank Sinatra songs a little less metaphorical.
The founder of Japan’s largest online clothing retailer Zozo, Maezawa made headlines in Sept. 2018 for buying SpaceX’s first tourist ticket for a trip around the Moon. At the time, Maezawa said he’d be bringing six to eight artists on the 2023 flight to create art inspired by the journey. Now, he’s put aside a seat on SpaceX’s Starship for his future love. Read more…
I hope you’ve all had a good week. Normally I’m behind the scenes (where I’m most comfortable), but I’ll be managing the Startups Weekly newsletter until I assign it to someone else. More on that in a few weeks. Want it in your inbox? Sign up here for this and other great newsletters we have to offer, including ones on space and transportation. For now, let’s get on with it, shall we?
A unicorn workout
Working out never did a body so good as it did for ClassPass this week. The popular startup that created a way to help people exercise more easily just became a unicorn with an influx of Series E cash.
The latest funding, in the amount of $285 million, was led by L Catterton and Apax Digital, with participation from existing investor Temasek. It brings ClassPass’s total known raise to about $550 million.
We reported a couple of weeks ago that ClassPass, then at a $536.4 million valuation, was sniffing around for the round, which would promote it to the unicorn club.
“We are motivated by the impact we’ve had on members and partners, including 100 million hours of workouts that have already been booked,” said ClassPass Founder and Chairman Payal Kadakia in a statement about the raise. “This investment is a significant milestone that will further our mission to help people stay active and spend their time meaningfully.”
Funding real estate
A couple of real estate-ish startups got some attention this week. Los Angeles-based Luxury Presence raised $5.4 million to help it help agents round out their digital marketing arsenals.
In other real estate funding this week, Orchard, previously known as Perch, announced that it has raised $36 million. The company solves the problem that so-called “dual-trackers” face: selling their home while trying to buy one. It’s stressful and costs a lot of money.
As Jordan Crook wrote in her story on the raise: “Orchard solves this by making an offer on buyers’ old houses that is guaranteed for 90 days. Orchard co-founder Court Cunningham says that more than 85% of those homes sell at a market price before the 90-day period.”
Image via Getty Images / Feng Yu
Lora DiCarlo’s return to CES
Brian Heater had a chat with Lora DiCarlo CEO Lora Haddock about the sex tech company’s return to CES. But the interview wasn’t conducted at a table in a crowded press room in some random hotel. It was in a truck with a big, glass trailer. It’s Vegas, obviously, so why not?
As Brian put it:
Driving down the Las Vegas Strip in a transparent box is a curious, extremely Vegas experience: puzzled tourists and confused CES attendees gawk from the sidewalks. Four of us are sitting in a makeshift living room with fuzzy white carpet: CEO Lora Haddock, Enzo Ferrari Drift DiCarlo (her fuzzy black-and-white Pomeranian), and a colleague, who holds Enzo in their lap. A four-foot-tall faux sex toy sits in a corner, swaying occasionally.
Last year, you might recall, the consumer tech show awarded Lora DiCarlo with an innovation award, but then took it back. They also banned the company from the show floor, stating it didn’t fit into a product category. Months later, they scored some funding and got an apology from the CES show runners.
SAN FRANCISCO, CALIFORNIA – OCTOBER 03: Lora DiCarlo Founder & CEO Lora Haddock speaks onstage during TechCrunch Disrupt San Francisco 2019 at Moscone Convention Center on October 03, 2019 in San Francisco, California. (Photo by Kimberly White/Getty Images for TechCrunch)
Around the horn
- Sisense gets $100M at a $1B valuation for accessible big data analytics
- Lily AI raises a $12.5M Series A to accelerate its e-commerce recommendation tech
- A venture firm that invests ‘from Park City to Kansas City’ just closed its third fund
- This startup just raised $7M, led by Google, to authenticate people based on their typing style
- MasterClass co-founder’s new educational startup, Outlier, raises $11.7M
- Twitter co-founder Biz Stone backs tutoring platform Scoodle
- Just Spices, the German spice mix startup, raises €13M Series B
- Union Square Ventures leads legal tech startup Juro’s $5M Series A
- Midnite raises $2.5M for its esports betting platform
Over on Extra Crunch we published a bunch of great stuff this week, including stories about Ring and its evolving stance on security and privacy, how gig economy companies are trying to keep workers classified as independent contractors, and whether online privacy will make a comeback this year.
Here are a few more:
- Layoffs at Lime and Getaround herald rise of profit-hungry unicorns
- An interview with Sisense CEO Amir Orad after the company’s $100M raise
- How some founders are raising capital outside of the VC world
- How startups fill the gap between revenue and investment
- Tech layoffs rise as cost-cutting comes into vogue
Head here if you aren’t a subscriber yet for a super-discounted first month.
Alex Wilhelm was back on the mic this week with Danny Crichton, TechCrunch’s managing editor. Their docket included news of Lily AI’s $12.5 million Series A, Insight’s $1.1 billion acquisition of Armis Security, a round for a self-driving forklift startup called Vecna and SoftBank’s Vision Fund.
But that’s not the only Equity news I have for you. Alex wants to help you all get started each week with Equity Mondays. In his own words:
The Equity crew will put together a short, zero-bullshit episode designed to get your week started. What news did you miss over the weekend? What recent venture rounds do you need to know about? What’s ahead in the coming week? And what’s on our minds? That’s what Equity Monday will bring you each and every morning in about seven minutes.
The good news is it’ll show up in the Equity feed you already know and love. Have a listen to the first Monday edition here.