Efficient finance management is an art that can be learned from a very early stage of life- from even before the time you had actually started earning your own bucks. Money management doesn’t necessarily involve the complex dynamics of investment banking, share trading, mutual funds, credit cards etc. Your finance planning lessons can start right from your childhood when your parents used to set specific “piggy bank” saving goals for you. However, with a huger income, comes the need for tracking your credit cards, insurance, tax filings, investments and retirements etc – and that’s where personal finance management gets complicated. As per reports, every 1 in 3 adults admits that their finances have grown more complex and for the worse. An Aite Group and Chase Blueprint survey reveals that 43% of those who admit that their finances have improved have also agreed that their finances have also simplified. Simpler finances rid you of the financial frenzy that most of the adults suffer from. Get in touch with your financial reality and explore a few simple tricks to manage your money.
Understand Your Investment Options
Understanding your investment remains one of your key responsibilities- especially if you’re in your mid-career phase. Try and discover ways in which different investment options for young and middle-aged professionals, work.
Stocks: Stocks can turn out to be very productive investment options if you are aware of the ways in which they fit in to your investment strategy. There are a lot of options to explore. There are these global stocks that would aid you track both stability and potential for growth. The local U.S stocks are ideal when you’re in your early years of your employment.
Mutual Funds: One of the biggest positives of investing in the managed account or the Mutual Funds is that they are managed on a day-to-day basis by the veterans in the field of finance.
Bonds: They can minimize the volatility of your profile in a major way. There are some low interest bonds in the market, besides the high-risk ones that are gaining momentum very fast today.
Maintain a Regular Saving and Budgeting Routine
Budgeting and saving up for retirement are crucial to your money management schemes. Once you draw up your entire budget it becomes easier for you to calculate your savings and determine whether at all you need to save up more or not. Consider these factors while drawing up the budget
Your overall income (take an average of your monthly earnings in case you’re working on a freelance basis)
Your expenditure- Start with your overall volume of debt. Consider what you owe to your individual lenders (mortgage, small personal loans, online cash advance loan etc), your rent, food bills, credit card bills, and entertainment expenses (it would be better if you maintain this sequence)
Saving- After considering your income and expenditures, you can now draw up your total savings. Please remember that your saving goals would be dependent on your present debts. It’s important to save up substantially for retirement. However, if you’ve a huge debt burden at present, don’t even think of saving up and not paying your installments. Get rid of your debts first and stay on course. No need to get frustrated. If you think that you’re ending up with paltry savings at the end of the day, a debt-free future wouldn’t be less rewarding as well. Start working on your saving goals once you’re done with your loans.
Start Working with a Good Financial Advisor
A certified financial planner can help you get a better picture of your financial reality and help you battle the woes. Ask relevant questions to them, co-operate with your expert by listening to his/their advice, so that they can guide you towards a better financial future.