Lynn Financial is your Sioux Falls retirement planner and financial consultant of choice, giving you the tips and strategies you need for a fruitful retirement and a successful financial future. We’re passionate about helping people achieve their financial goals, whether they’re fresh out of college, deep in their professional career, or transitioning toward retirement.

In this blog, we’re going to talk about a few things to keep in mind as you age that can potentially improve your financial standing, and help you reach your short-term and long-term financial goals. These are tips that you should keep in mind today—no matter how old you are—because your financial decisions today can pay dividends years down the road.

Get out of debt.

Not all debt is created equal. For example, debt from a mortgage, student loans, or a small business loan is debt that can ultimately improve your income potential and your life. However, debt like high interest credit card debt, or payday loans can leave you with crippling interest payments and stunted income. The interest alone accrued on this kind of debt can sink your finances, so it should be one of your highest priorities to pay off this debt as soon as possible before you start saving seriously.

Stow some money away.

Not under your mattress—in a place that provides you with slow and steady financial growth. Saving money early on in a money shelter, like an IRA, can allow you to take advantage of compounding interest (in simpler terms, interest accrued off of your already accrued interest), and ensures that your money is untouched until you’re ready to retire—meaning you’ll have a much larger retirement payout when you’re ready to live more and work less.

Stowing money away also means creating some sort of emergency fund that allows you to handle unexpected expenses like medical procedures, serious vehicle repairs, time-sensitive home repairs, pet emergencies, and last-minute travel. These surprise expenses can derail your short-term and long-term financial goals, and can even prevent bills from being paid—something that causes financial difficulty and undue stress. With an emergency fund, you’ll be able to handle anything that life throws at you, and you’ll have peace of mind knowing that you’re prepared for life’s unexpected moments.

Tap into free money.

Free money doesn’t grow on trees, but it does come in the form of employer 401(k) matching, health savings account (HSA) matching, flexible spending account (FSA) matching, and a number of other workplace-related benefits. Putting more money into these tax-sheltered accounts will increase employer matching potential, which will provide you with more money for medical expenses, as well as a nice bonus when your retirement comes around. While employee benefits handbooks can be long and tedious reads, understanding the capabilities of your employee benefits package can help you tap into its full potential.

Learn from your mistakes.

It’s one thing to make mistakes—we all do it from time to time. The key is to learn from those mistakes in order to avoid them in the future. This is especially true in the world of money management and finances. It’s important to learn from every financial mishap and period of poverty in your life—the experience that you gain from these situations will help you learn to save more money, live with less, and use thriftiness and resourcefulness to get through the toughest times. Soon, those financial issues that seemed like life-or-death scenarios will be simple and easy to overcome.

Understand your financial circumstances.

The only thing worse than making premeditated, ill-advised financial decisions is not understanding how your finances work on a short-term and long-term level. If you’re unaware of how (or if) your financial profile is netting your money, or oblivious of your spending habits and patterns, you’re probably not living up to your full financial potential (and you’re definitely not working with Lynn Financial). For the greatest financial growth and success, you must understand every single part of your financial portfolio, and be aware of the consequences of your financial actions. This knowledge will ultimately make you more disciplined in the financial world, and help you to make more educated financial decisions for your future.

At Lynn Financial, we understand that the financial world can be complex and difficult to understand—that’s why we’re here to help. Whether you’re looking for a more comfortable way to retire, or just need help making sense of your financial portfolio, Lynn Financial is here to educate you on your financial standing, and provide you with financial strategies that can lead you to financial contentment for many years to come. Get started with Lynn Financial today!