In the Virgin Islands, a five-year financial plan helps consumers become more financially stable. For consumers who are just starting out, home ownership isn’t possible initially. However, by following a strict plan for five years, the consumers generate enough savings to achieve this dream. A financial consultant helps consumers set up their five-year plan to become a homeowner in the future.
Start a Certificate of Deposit
The consumer takes one-half of their income tax refund and starts a 5-year certificate of deposit account. The funds remain in the account until the maturity date to maximize their earning potential. The financial consultant explains which banks provide the highest return on the consumer’s investment. When assessing their options, the consumer reviews the projected interest they will earn based on their investment.
Setting Up a Savings Account
The consultant sets up a budget for the consumer to follow and generate additional savings. By following the budget, the consumer has a set value to save each pay period. While following the budget, the consumer sets up a savings account. The consumer transfers the set value into the savings account each pay period. Online savings accounts present a higher earning potential. The financial consultant identifies a goal for the consumer to achieve within the first two years.
Residual or Passive Income
The financial consultant introduces the consumer to new methods of earning money without much effort. The earnings are considered residual or passive income. Dividend income is a beneficial choice for residual income. The financial consultant helps the consumer select the right stocks and investments that offer dividend income. The dividend income is transferred to the consumer’s savings account to generate more interest.
Use an Interest Checking Account
The consumer opens an interest checking account and deposits their paychecks into the account each pay period. By using the account, the consumer generates interest over time. The interest earned remains in the account until the end of the five years.
In the Virgin Islands, a five-year plan is a beneficial opportunity to generate adequate savings for the future. The plans start by opening a CD for a five-year period. A consultant identifies additional strategies for accumulating savings. At the end of the journey, the consumers have adequate savings for major purchases such as buying a home. Consumers who want to learn more contact David Johnson Cane Bay now.