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Now Money, Later Money, Never Money: Proactive Strategies for Building Wealth

Building a Secure Financial Future

Financial Literacy| 7 min read | Updated: February 2025

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When it comes to managing money and building wealth, it’s important to think about your financial life in stages: the immediate needs of today, the long-term goals for retirement, and the legacy you want to leave behind. Each of these stages requires a different strategy and mindset. Understanding how to balance your “Now Money,” “Later Money,” and “Never Money” will empower you to make smarter financial decisions, no matter where you are on your wealth-building journey.

At Civista Bank, our Wealth Management team believe in the importance of proactive financial planning. Let’s take a closer look at how to approach each stage of your financial life—from saving for today’s needs to securing your future and leaving a legacy for those you love.

Key Takeaways:

  • Now Money: Focus on short-term savings and investments to handle immediate financial needs and build an emergency fund.
  • Later Money: Prioritize retirement planning with 401(k)s, IRAs, and other long-term savings vehicles.
  • Never Money: Ensure your wealth continues beyond your lifetime by creating a legacy plan with estate planning tools like wills, trusts, and beneficiary designations.
  • Diversifying your investments across different asset classes ensures that you are prepared for both the short-term and long-term financial goals.
  • Regularly revisit your financial goals to ensure you’re on track for each stage of your financial journey.


Now Money: Building for Today's Needs

What is Now Money?

Now Money is the financial resources you rely on for your immediate and short-term goals. This includes your everyday expenses, savings for emergencies, and short-term investments that allow you to maintain a comfortable lifestyle today. It’s the money that lets you live well without the stress of financial uncertainty.

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Building Now Money:

  • Start with an Emergency Fund: Aim to save at least three to six months’ worth of living expenses in a liquid, low-risk account. This safety net will allow you to navigate unexpected financial setbacks, like medical bills or car repairs, without dipping into long-term savings.
  • Short-Term Investments: While an emergency fund is a priority, investing excess funds for medium-term goals (like purchasing a home or starting a business) can help your money grow faster. Consider options like high-yield savings accounts or short-term bonds.
  • Budgeting and Managing Debt: Establish a realistic budget to keep your spending in check and avoid unnecessary debt. If you have high-interest debt, such as credit card balances, work on paying it off quickly to avoid draining your resources.

 

Proactive Tips for Managing Now Money:

  • Set up automatic transfers to your savings account to ensure you’re building your emergency fund consistently.
  • Regularly assess your monthly expenses to identify opportunities to cut back and redirect savings.
  • Consider working with a financial advisor to identify ways to optimize your short-term investments while balancing safety and growth.


Later Money: Securing Your Retirement

What is Later Money?

Later Money is the wealth you’ll rely on when you’re no longer working. This is the money you save and invest for retirement, with an eye on maintaining your lifestyle in your later years. The earlier you begin saving for retirement, the more you’ll be able to enjoy in your golden years.

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Building Later Money:

  • Employer-Sponsored Retirement Plans (401(k)): If your employer offers a 401(k) plan, take full advantage of it. Contribute enough to receive the full company match, if available. A 401(k) allows you to invest in your future while benefiting from tax advantages, such as tax-deferred growth and potential employer contributions.
  • Individual Retirement Accounts (IRAs): IRAs are another great way to build wealth for retirement. Traditional IRAs offer tax-deferred growth, while Roth IRAs provide tax-free withdrawals in retirement. Both options have distinct benefits, so consider which one aligns with your financial goals and tax situation.
  • Diversify Your Retirement Portfolio: Diversification is key when investing for retirement. A mix of stocks, bonds, real estate, and other assets can help protect your retirement savings from market volatility. Ensure your portfolio is regularly rebalanced to stay aligned with your risk tolerance and retirement timeline.


Proactive Tips for Managing Later Money:

  • Set a target for how much you want to save for retirement and use online retirement calculators to gauge whether you’re on track.
  • Take advantage of catch-up contributions if you're over 50 to accelerate your retirement savings.
  • Review your retirement savings plan regularly and adjust your contributions as needed to stay on course.


Never Money: Creating a Legacy for the Future

What is Never Money?

Never Money is the wealth you’ll leave behind when you pass away. This is your legacy—the assets, investments, and other financial resources you want to transfer to your heirs or charitable causes. Proper planning now ensures that your wishes are honored and that your loved ones are taken care of after you're gone.

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Building Never Money:

  • Estate Planning: One of the most important steps in securing your legacy is creating a comprehensive estate plan. This includes writing a will, setting up trusts, and naming beneficiaries for your financial accounts. Estate planning ensures that your assets are distributed according to your wishes and minimizes the tax burden on your heirs.
  • Life Insurance: Life insurance can provide financial security for your loved ones in the event of your death. It can help replace lost income, pay off debts, and cover final expenses, making sure your family is supported when you’re no longer around.
  • Gifting and Charitable Contributions: If you’re interested in leaving a charitable legacy, consider setting up a charitable trust or donating assets to a cause you care about. This allows you to give back while reducing your estate’s tax liability.


Proactive Tips for Managing Never Money:

  • Work with an estate planning attorney to create or update your will and ensure your estate plan is in place.
  • Review beneficiary designations on accounts like life insurance, retirement plans, and bank accounts to make sure they reflect your current wishes.
  • Consider gifting assets during your lifetime to take advantage of annual gifting limits and reduce your taxable estate.

The Key to Financial Success: A Balanced Approach

By understanding and prioritizing the three stages of wealth—Now Money, Later Money, and Never Money—you can create a more secure financial future. Whether you’re just starting to save or planning for retirement, being proactive about your financial goals is essential. At Civista our Wealth Management team, is here to help you navigate each stage with confidence, providing the guidance you need to make the best decisions for your financial well-being.

Stay on track for your financial future by developing a strategy that works for your present, your retirement, and your legacy. Let’s work together to create a plan that helps you achieve your goals today, tomorrow, and beyond.


























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