Congratulations on prioritizing improving your financial skills! In all seriousness, a simple change can have a ripple effect on various aspects of your life, much like a rumor in a small town. Your Fresno financial advisor understands that by organizing your finances, you might experience a decrease in stress and an increase in confidence in all areas.
Step 1: Create a Monthly Budget (Each Month)
To begin my list of money hacks, there is nothing more important than budgeting every month. And by every month, I mean every single one. But don’t leave just yet – this isn’t about being stingy or eliminating all enjoyment from your life.
A budget serves as a blueprint for managing your finances, encompassing both income and expenses. It involves allocating every dollar to a specific purpose, such as covering bills, purchasing groceries, funding a trip to New York City, or setting aside money for a lavish two-story doghouse for your French bulldogs.
2. Keep track of all your transactions.
I have both positive and negative updates for you. The negative update is that your budget does not function like a slow cooker. It is not as simple as adding meat, vegetables, and sauce, and then ignoring it until dinner time, or in this situation, until the following month.
3. Allocating funds for your objectives.
When it comes to financial goals, the most effective approach to achieving them is through budgeting. If your aim is to eliminate debt, you must modify your budget to align with that objective.
Avoid excessive spending by being wise with your purchases. Only buy items that meet two criteria: 1) they are within your financial means and 2) they will be put to use. It is important to plan ahead and budget for these expenses.
Step 4: Verify the Status of Your Insurance Policies
Why is insurance included in a list of money hacks? After all, it is a cost that you have to bear and you may be paying more than necessary. Additionally, if you do not have the appropriate coverage, it could result in a significant and unforeseen expense in the future.
Conclusion
Giving a large sum of money to a young high school or college graduate is akin to handing a brand new Ferrari to someone who just received their driver’s license. This can lead to a disastrous outcome. In order for your financial contribution to have a positive impact, it is important to teach your children the importance of diligence and accountability. They should possess the qualities of integrity, maturity, and wisdom to properly manage the financial gifts you have bestowed upon them.
We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!
Investment advisory services offered through Foundations Investment Advisors, LLC, an SEC registered investment adviser. The commentary on this website reflects the personal opinions, viewpoints, and analyses of the author, Soutas Financial, and should not be regarded as a description of advisory services provided by Foundations Investment Advisors, LLC (“Foundations”), or performance returns of any Foundations client. The views reflected in the commentary are subject to change at any time without notice. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security, or any security. Foundations manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Foundations deems reliable any statistical data or information obtained from or prepared by third party sources that is included in any commentary, but in no way guarantees its accuracy or completeness.
