Hi, my name is Grace. While growing up, my parents never seemed to have enough money to pay for everything. Although I knew they worked hard, I also, even as a child, could see them wasting money on things like cigarettes and over-priced holiday decorations. I wanted to be able to help them, and because of that, I always had an ear open to financial concepts. Over the years, I have become an autodidact on everything related to finance, and as an adult, I have helped my parents to sort out their finances. However, I know how hard it is to be broke and how depressing that can seem. In this blog, I am going to have lots of interesting and inspiring information on financial planning, and no, it's not just for the rich or wealthy. These tips can be used by anyone. I hope they help you!
It is a common assumption that only the rich and wealthy require financial planning advise. This has resulted in many people lacking important financial guidelines that would have led to increased savings and investments. Below are multiple questions that will help you determine if you need a professional to advise you on financial planning.
Do you have a job?
As long as you have a job, then it is necessary to seek financial planning advise. This is because some people fail to plan based on the amount they are earning and this leads to financial distress. A financial planner will help you to determine the amount that you will spend monthly and the sum that you will save. The money that is saved will then be directed to investments that can generate an additional income. It does not matter whether your salary is small or big. In fact, the financial discipline that you develop when you have a small salary will play a critical role in avoiding excessive spending when your income increases.
Do you run your own business?
The fact that you have your own business does not automatically mean that you can efficiently manage your finances. Many business owners end up mixing their personal and business finances. While you might assume that there is nothing wrong with this habit, since the business is yours, this habit can lead to financial ruin. As such, a financial planner will play a critical role in showing you the best strategies to keep your business and personal affairs separate. This will not only improve your personal financial situation but also guarantee the success of your business.
Am I likely to receive an inheritance?
Many people who receive an inheritance are rarely accustomed to a large amount of money, and they lose a significant portion. This is because they lack financial discipline that is essential when you have received a windfall. A financial planner will, therefore, help you to evaluate the various investment options that can ensure you live comfortably for the rest of your life. Instead of using the entire inheritance amount for daily expenses and to live a flashy lifestyle, the planner will show you how to make investments and live off the interest earned. In this way, you will always have the principal amount, and you can access it in case of an emergency.
As long as you have a source of income, financial planning tips are essential to enable you to know the best ways to put your money to productive use.Share
22 January 2018