Personal finance: Like prescribing glasses, it is both science and art. It is virtually impossible to create a one-size-fits-all guide to finance because everyone’s situation is different. I like to think about finance in terms of goals. Read on for some general financial aspirations and strategies to achieve them.
What does your emergency fund look like?
Many advocate a 3–6-month fund.
Pay off debt quickly or maximize payback period?
Consider being debt-free rather than maintaining loan payments to lift a burden off your shoulders.
Buy a home or rent?
Ownership entails more costs than just mortgage payments.
Eyeing a private practice?
Have enough in reserve to qualify for bank financing.
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Will you be starting a family?
Look into workplace leave policies, 529 plans to save for education, and be prepared to be amazed at how expensive children are.
Want to retire early?
Consider a more aggressive investment approach but realize this raises risk. Diversify your portfolio, create areas of passive cash flow.
Taking care of elderly parents in your future?
Look at long-term care insurance.
The beauty of personal finance is that there are a variety of approaches for the multitude of goals one is looking to accomplish.
