Financial Management TipsSubmitted by Old Dominion Capital Management, Inc on March 4th, 2019
There are a variety of financial management tools and applications available today that can be used to help you manage your money. From software applications to phone apps, there’s no shortage of help available.
Unfortunately, those apps and software programs can only do what you set them up to do. And all the apps and software products in the world will make no difference in your financial situation if you don’t do the following:
1. Set financial goals. Be bold, be brazen, be confident. If you want to create wealth, you have to have a plan, and a goal. Set a year-end goal, a five-year goal, and a retirement goal. Take those goals out periodically and examine them, adjusting them accordingly if necessary. Like anything else in life, you can accomplish more when working towards a specific goal.
2. Don’t be afraid to lose money. This is important to those just starting their professional life. This is the time that you can be bold and invest in something that interests you. While investments become riskier with age, and you certainly don’t want to invest in a high-risk situation when you’re in your 50s, taking a risk now can pay off dramatically, and if it doesn’t, you’ll have more than enough time to recover from your losses.
3. Invest more time and money in yourself. This can be anything from going back to school for an advanced degree that will provide you with additional income in the long run, to investing more in things like your health. Take note of the fact that the majority of people who end up filing bankruptcy do so because of excessive medical bills. And while some medical bills cannot be prevented, you have more control over your health than you may think. Stop eating junk food every day, limit your alcohol consumption, and see your doctor promptly for any health-related issues that may occur.
4. Plan for your medical expenses. While eating well and practicing other preventative measures may be helpful, there may be a time when a major health issue will need to be addressed. Be sure that you have some safety nets in place, should an issue arise. This can include having good health insurance, because, yes, even people in their 20s and 30s get sick. Having a short-term/long-term disability can also be a life-saver, particularly if you need to be off work for a significant amount of time.
5. Implement ways to save money that can have significant impact on your savings, but will do little to alter your lifestyle. Advice like don’t charge more than you can pay off each month, stop eating out all the time, and don’t live above your means can sound like clichés, but they also are solid financial advice.
6. Start putting money away for retirement as early as you can, even if it’s a very small amount. The years will go by much faster than you can imagine. Be prepared.
So, go ahead and use that software, or download that app, but remember that change starts with you.
*This content is developed from sources believed to be providing accurate information. The information provided is not written or intended as tax or legal advice and may not be relied on for purposes of avoiding any Federal tax penalties. Individuals are encouraged to seek advice from their own tax or legal counsel. Individuals involved in the estate planning process should work with an estate planning team, including their own personal legal or tax counsel. Neither the information presented nor any opinion expressed constitutes a representation by us of a specific investment or the purchase or sale of any securities. Asset allocation and diversification do not ensure a profit or protect against loss in declining markets. This material was developed and produced by Advisor Websites to provide information on a topic that may be of interest. Copyright 2014-2018 Advisor Websites.