Some people are able to start saving money as early as 3 years old; you might remember when you were young how your parents would encourage you to drop a penny into your little piggy bank, and what discipline that took!
However, as we grow older, it’s important to learn that when managing our finances, we need not just to set aside portions of cash for the future, but spend the right way as well.
This is what financial planning is about.
Many people invest in the wrong places and at the wrong time which hurts assets; some just don’t know where to start, others have spending bad habits. But thankfully there’s a solution. With the help of financial experts, anyone can be guided, establish a firm foundation, and start their journey to financial freedom.
Here are the best ways you can start to improve your financial status:
1. Set Goals
Your goals must include short-term, medium and long-term goals, which means you have to ask yourself what you want to achieve..
Short-term goals like paying off your car loan in a year and medium term goals like increasing your incoming by a 30 % in the next five years are some of examples.
For a long-term goal, it may be retiring at the age of 60, or enabling your children to not have to pay for college.
Whatever they are, you need to follow specific, measurable, realistic and time-based goals which you will do with the help of a financial expert.
2. Account For Your Assets and Liabilities
It’s important to understand much you earn and spend, so you’ll know just how much can and should be saving.
Individuals with a small income may only be able to save a small amount, while those with a larger income may be able to save more. This is a way of financial stewardship, and grasping your cash flow is one big aspect of achieving your financial success.
3. Create An Effective Plan
In this phase, your financial advisor will aid you in the right strategy to maximize your savings, taking your information and situation and crafting a personalized finance plan that match your goals and raise your financial status.
Whether you’re broadening your investment portfolio, or joining the stock market for the first time, this is the tailor-fitted way to make the most out of your time and money.
4. Follow Your Plan
In this day and age, it is even easier to follow your step-by- step plan with the aid of an online account that will help you monitor your spending and track financial progress. I know it sounds like a no-brainer, but you need to be proactive about following the plan you’ve established. If you are tuned-in, and making a conscious effort, your financial future will be in good hands.
5. Consult The Experts
If you’re not quite sure how to execute your plan or if you need guidance to follow through with it, your financial expert will serve as your coach to help and encourage you to make the right move every time you make a financial decision.