Teachers are tasked with a very important job – to educate future generations. While they plan for a successful start to their student’s lives, it’s important that they’re also planning a successful financial future for themselves.
Here are four ways teachers can make smart moves that allow flexibility and stability with their finances.
Pay Off Student Loans
Coming straight out of college and entering the workforce can be exciting, but also stressful. All former students have to remember the importance of paying student loan debt. The goal should be to pay off as much of the loan as possible and as quickly as possible to avoid added interest.
Some teachers are also eligible to participate in a loan forgiveness program depending on where they work.
Build an Emergency Fund
One of the most important financial moves anyone can make is to establish an emergency fund in case of an unexpected expense or life event. Set aside an amount that is 3 to 6 months’ worth of income in case you need it.
Plan a Budget
A teacher’s budget is going to look different than other professions, so it’s important to pay attention to things like salary, timing, and expenses. Educators also need to account for things such as classroom spending, debt, bills and other necessities in their budgets.
Plan your budget by figuring out your salary after taxes and when you’re going to receive your income and then deduct necessary expenses.
Plan Retirement Options
Retirement options for teachers are an important tool that needs to be planned in advance to ensure long-term and future financial security. Whether there is a state offering of a pension plan for retirement, there are other options such as 401(k) or IRA plans that can also be beneficial depending on what your retirement goals are.
By setting yourself up for success, educators can have peace of mind that they are financially set for life.