SOLID FINANCIAL STRATEGY CAN HELP YOU BOOST SAVINGS (FINANCIAL FOCUS)

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

To achieve your long-term financial goals, you need to do a good job of saving and accumulating money. Sounds simple, right? But it's proven to be difficult for a great many people.

Fortunately, there are some good things you can do to strengthen your personal savings habit. Here's something to consider: People with some kind of comprehensive financial strategy are likely to save twice as much as those with no plans at all, according to a recent study by the Consumer Federation of America.

How can you create a financial strategy? You may wish to consult an investment expert, who has the tools and resources to help you develop a strategy that is suited for your individual needs. In addition, there are things you can do on you own. Here are a few suggestions:

Identify your short- and long-term financial goals -- What do you plan to do in five years? Ten years? Will you need to help your kids pay for college? What sort of retirement lifestyle do you envision for yourself? These are the questions you must ask yourself as you chart a financial strategy. You don't need all the answers right away. But you do need to have a sense of where you want to go -- and what it might take to get there.

Pay yourself first -- Once you've established some targets for how much you need to save, you'll want to take a good, hard look at your budget to see how much you can afford to put away. Once you've done that, resolve to pay yourself first. Each time you get paid, have your bank deposit some of your money into an investment vehicle, such as a growth-oriented mutual fund. You'll probably find that you don't really miss the funds that are being invested for you -- and, as your income goes up, you can put even more away.

Build an "emergency cushion" -- Most financial experts suggest putting away at least six months' worth of living expenses in a highly liquid account, such as a money market fund. This cushion will help you cover any short-term emergencies, such as the need for a major appliance, without dipping into your long-term savings.

Choose the appropriate investments to help you meet your goals -- Once you've built your emergency cushion, you can start to create an investment portfolio that's personalized to meet your individual goals. For instance, you may designate a particular mutual fund to help pay for college costs, while other investments, particularly IRAs and other tax-favored plans, can be used for retirement.

These basic rules should help you establish and maintain a solid, long-term savings and investment plan. Remember, you don't need to be a stock market wizard to achieve financial security. But you do need patience, discipline and common sense. If you've got these traits, you're well on your way.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.