Financial planning is already a difficult task for so many of us. And when you're an immigrant in the United States of America, this planning can be even more difficult. I hope these 8 tips will help any of you out there who needs some basic understanding of good personal finance choices.
Save for your retirement now. At least 10%, 15%, 20% of your income invested in low cost, broad based index funds in your 401k or Roth IRA. Try to spread your money 50/50 between an S&P 500 index fund and a Total Bond index fund.
Your children shouldn’t come to you for college funds. Your retirement is more important than pay for your child's eating out or partying.
Focus on paying off your house, car note, and credit cards. Do your best to eliminate all your debt.
Stop borrowing and cut the credit cards. Your emergency fund needs to cover 3-6 months of living expenses. Credit cards are not for an emergency.
Understand this will take time.
Get life insurance if you can, a 10-30 year term life insurance policy in case anything happens to you. If you can get enough to cover the home you live in, kids college and life experiences like a wedding. If you can afford the monthly payment then try to get a higher policy amount at least 500,000.
Budget budget budget. Your income needs to be on a budget.
Get a written will and estate plan set in place. Establish a health directive. If you have young children, you have to make a decision as to what happens to them in the event you are no longer alive.For article post and links to resources click here: https://habeshafinance.com/simple-financial-planning-tips-for-parents
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