Credit Union Finance: October 2005

Start planning as early in life as possible. Initial professional consultations are often free.
Put your financial plan in writing so it seems more tangible.
Saving 5 percent or less of one's income is no longer a viable plan; shoot for 10 percent or more.
Dual-income families may consider saving or investing one entire salary.
Maximize your employer's 401(k) plan before considering other investments like a Roth 401(k) or a Roth IRA. Diversify further investments.
Prioritize retirement savings over college savings; instead, help kids pay off their student loans as finances allow.
Consider establishing a secondary income now (such as an Internet business or hobby turned money-maker) to carry over into retirement.
As early as age 40, look into long-term-care and disability insurance.
View health and exercise as financial safeguards.
Don't wait until retirement to pursue dreams and interests. You may be working longer than you anticipate.

Pay yourself first: Avoid the temptation to spend by automatically putting a percentage of your earnings into a savings account.
Adopt a cash only policy: If you don't have cash, don't buy it.
Brown bag it: Figure up what you spend on lunches out. Bringing a sandwich to work could save you as much as $1,200 per year.
Realize time is money: The earlier you start saving for retirement, the better.
Establish an emergency fund: By saving at least six months of typical expenses, you'll have a cushion for tough times.
Have adequate insurance: Make sure you are protected should your health leave you unable to work.
Track expenses: Find out where your money really goes.