When it comes to your financial future, it is important to take a realistic approach. You need to start by taking a serious look at where you currently are and then you need to map out the steps to get to where you want to be.

Building an emergency fund

An emergency fund is a necessary asset that can protect you from unexpected emergencies. However, it takes time and effort to build a strong one. The best way to start saving is by creating a budget and putting a line item for saving on your monthly expenses.

It's a good idea to have at least three to six months of savings on hand. Experts suggest keeping this amount in a high-yield savings account. You can also add money to your emergency fund if you have a home equity line of credit.

A great rule of thumb is to set a goal of having a 10 percent emergency fund. This can be hard to achieve with your income and expenses, but it's a good starting point.

Long-term care and disability insurance

Long-term care and disability insurance can provide a measure of financial security in case of an accident or illness. However, it is important to consider all of your options before purchasing a policy.

A long-term care and disability insurance policy can pay for home care and personal assistance. This includes medical and nursing services, adult daycare and assisted living facilities. It can also cover expenses related to an extended hospital stay.

Long-term care and disability insurance can be a good choice for high-income occupations, as well as for individuals who are able to afford the premiums. For instance, individuals with diabetes are more likely to suffer from a long-term disability.

A long-term care and disability policy can help reduce the strain on family members. But, it is not always easy to claim.

Tax-advantaged college savings account

There are many different types of tax-advantaged college savings accounts that you can open to help your children with the costs of education. The types of accounts include IRAs, Coverdell Education Savings Accounts (ESAs), and 529 plans. These plans allow you to save money to pay for qualified higher education expenses, including tuition, books, and other related expenses.

There are also prepaid tuition plans. These allow you to pay for a designated beneficiary's tuition and fees at any in-state or out-of-state school. You can also use the funds for registered apprenticeship programs.

If you want to learn more about college savings options, you can visit the College Board website or contact your financial aid counselor. You can also consult a financial planner.

Depending on your family's needs, you can choose from various mutual fund portfolios, exchange-traded fund portfolios, and static fund portfolios. You can also choose from a bank product that offers principal-protected deposits.