RADNOR, PA — As the new year unfolds, many Americans are setting financial resolutions in response to current economic conditions. According to a recent survey by Lincoln Financial Group (NYSE: LNC), 73% of Americans believe that economic factors, including inflation and rising interest rates, will worsen in 2024. As a result, there’s a growing focus on budgeting, emergency savings, increasing financial knowledge, and boosting income among those setting financial goals this year.
In response to these concerns, Lincoln Financial offers three key steps to creating a comprehensive financial plan that can help Americans navigate the challenging economic landscape.
1. Partner with a Financial Professional
The first step in crafting a robust financial plan is to connect with a financial professional. Research shows that individuals who work with a financial professional to construct a diversified portfolio are significantly more likely to achieve their financial goals. To aid in this process, Lincoln Financial provides a tool that helps consumers find certified financial professionals to guide them on their financial journey.
2. Develop a Strategic Budgeting and Saving Plan
A well-thought-out budget is a crucial tool for enhancing financial wellness. It allows individuals to track spending, separate needs from wants, and allocate funds for short and long-term financial objectives. By setting realistic goals and sticking to a budget, individuals can significantly improve their overall financial health and effectively manage their financial priorities.
Lincoln Financial recommends a five-step budgeting plan. This begins with setting goals, which could range from short-term objectives like paying off debt or buying a new car, to long-term goals such as building an emergency fund or planning for retirement. The subsequent steps involve totaling income, tracking expenses, identifying areas for extra savings, and finally, implementing the budget.
3. Protect Against Market Volatility
A comprehensive financial plan should also include strategies to safeguard against market volatility. Incorporating products that offer protection in down markets can bolster confidence and keep individuals focused on long-term goals. Options like annuities, which can provide protected lifetime income for an additional cost, are worth considering. Some products even offer built-in protection that credits investors positively in flat or down-market scenarios, allowing individuals to invest without sidestepping growth.
For more details on the tools and products offered by Lincoln Financial, visit www.lincolnfinancial.com.
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