8 Money Saving Tips From Financial Advisors and Why You Need One
When it comes to money management and money decisions, financial advisors can give you a lot of financial wisdom and insight. They can give you sound and impartial third party opinion when it comes to your money, and help you plan for your financial future. This is because they know the financial services industry well. They can inform you about current financial opportunities and issues, and help you understand complex financial concepts. In short, they have your best financial interests at heart and help you achieve your financial goals. What advice can they give when it comes to money and investments? Here are some of them.
Top money coach Todd Tresidder of FinancialMentor.com also swears by this. Spend less, invest more. However, if you spend more than you earn, you will incur debts and have zero savings and investments. The best way to remedy this is to know how much money is coming in and where you’re spending it. Doing this will give you a clear picture of things that you can cut back and ideas on how you can earn more so that you no longer have to make ends meet. Track your expenses, trim unnecessary ones, and target savings.
Don’t let succumbing to your wants be the story of your life. It’s okay to reward yourself with nice things. Just don’t go crazy every payday and splurge on the latest in food, fashion, and technology. Just because you have money to spend or a credit card to swipe doesn’t mean that you should.
If you really want to stop your impulse buying, take some time before purchasing an item. Ask yourself if you really need it, and if you have the cash to buy it. If you don’t, can it wait until you have the money to buy it? You’ll be surprised at how quickly your feelings will change about buying it.
There’s nothing more liberating than paying off all your credit card debts and personal loans and then starting over with a clean slate. If you’ve never had bad loans or cancelled credit cards, well done! Keep it that way and stay away from debts as much as possible. Time.com shares that to get out of debt, spend only in cash, and spend only money that you have. If you have to use your credit card, use it responsibly and always pay your bills on time. If you think you need a cash loan, make sure that you pay it every month to avoid penalties and charges. Take care of your credit score, and do everything you can to improve your credit standing if you’ve already had financial setbacks in the past. Once you eliminate debts, you can truly enjoy financial freedom.
According to the financial website FinishRich.com, make savings automatic. Let this money go to building your buffer or emergency fund. Consider it as your targeted savings. Save money for your wedding, for your first baby, for your retirement, for down payment on your first car, or equity for your first home. Save for emergencies that will affect your cash flow, like losing a job, or getting sick. Having a strong financial cushion will let you sleep at night, and you’ll worry less about financial stresses usually brought about by the unexpected.
If you’re really serious about saving money, you can have a certain amount of your salary deposited directly to your savings account. This way, you won’t be tempted to touch it or spend it. If you don’t have an ATM card for your savings account, you will also be less tempted to withdraw money from it.
You don’t need to have a lot of money to invest. But you certainly need to invest to have a lot of money. So start small, and start early. You don’t need to invest all of your life’s savings, though. Just invest an amount that will not clean you out.
As the financial blog Yourmoney.com puts it, investing is not the same as gambling. Investing is something that you do for a chance to receive better returns over a specific time period. Even with the unstable swings in the financial market, you can easily bounce back when the market is not doing very well. If you’re in it for the long haul, you can reap much bigger rewards compared to having your money just sit in the bank.
Any financial coach will tell you that there’s no shortcut to success. One simply does not become a millionaire overnight. Unless of course you hit it big on YouTube, become an overnight sensation, and land TV and movie deals.
It takes years to build a wealth that you’re proud of. The product of your blood, sweat, and tears. It takes years of hard work and dedication, coupled with calculated risks and investments. Think about your long term plans and goals, and work your way every day until you achieve them.
If you want to learn more, check out our exclusive interview with Francisco Colayco and his Step-by-Step Guide to Wealth Building.
Sure, you can always Google it for answers, but it’s not as good as someone explaining it to you in depth. Being informed can help you make the best decisions regarding investments, business ventures, debts, and even taxes. With every money question that you ask, you learn about the pros and cons of each money decision that you will make.
Always get the monthly bills out of the way first. Pay off the utilities, the car, the house. Do your weekly groceries, gas up the car, and set money aside for the children. It’s such a good feeling to have everything paid off and know what money you have left, no matter how big or small. You may not have a lot left for recreational activities, but at least you’ve paid off all your obligations for the month. That’s being financially responsible.
If you don’t know how to manage your money, you can always consult with a financial advisor. They can help you get started. They can help you manage your credit card to avoid maxing it out. They can give you different investment options that will suit your lifestyle and fit your budget. A good financial advisor will help you identify things you need to change when it comes to your spending, investing, and saving habits to make sure that you will always be financially stable.