4 Pieces of Financial Advice You Cannot Ignore
When you search for financial advice, Google search results bring in a plethora of advice and tips. While it’s easy to ignore misguided dating advice at family gatherings or humdrum conversations between family and friends, financial advice cannot be risked. Whether it’s a family member, friend, boss or a professional adviser, you’re likely to receive a ton of tips for managing your finances and investments; however, not all these tips are worth following.
For your ease, we have compiled the best financial advice that should never be ignored and will prove to be worth every penny.
Have a plan
A plan acts as a guide throughout your financial journey and even if domestic and global upheavals dent your investments, it will help you get back on track. At a small level, planning affects every aspect of personal finance, whether it be through taxation, insurance or achievements. A good and successful plan is one that helps you cut losses, enhance gains, and avoid the pain and panic of a financial or life stage crisis.
A plan is a simple matter of listing out your needs and wants, and deploying the money in the right avenues so that you have it when you need it. The first step to every plan should be to calculate your existing money and identify your goals for the future. Calculate the exact amount required for each goal after factoring in inflation and the time horizon in which you want it.
Keep track of your spendings
Keeping tabs on where your money is going, whether fixed expenses like rent or mortgage payments and transportation costs or discretionary spending like dining out and traveling, is a crucial part of mastering your money. Setting up a spreadsheet or using a service like LearnVest or Mint can help you make cuts where necessary and even set you on a path to early retirement if that’s what you’re after.
Invest in the stock market
No one can accurately time the stock market for inflation or a huge decline; it’s bound to bounce over when it’s supposed to. A smart idea for investing is to put your money in low-cost target-date retirement funds. These diversified funds automatically adjust their asset allocation and risk exposure based on your age and retirement horizon. Success in investing comes with understanding one’s risk tolerance, constructing a diversified portfolio, and staying long term.
Build an emergency fund
Life is completely unpredictable, even if you are able to time the stock market, you are less likely to be able to time your downfall, it could be in the form of unemployment or home repair, car repair, child expense, or even a medical emergency. Things are likely to go wrong whether you plan every move in your life or keep a positive approach to life.
If there’s anything you can count on, it’s that life is filled with unexpected changes. Hence, most financial planners suggest building an emergency fund that could cover six to nine months of expenses. If you don’t have to save at the ready, you are leading yourself and your family to the risk of completely relying on friends and family for financial support, debts, or loans.
More in Advisor
-
`
Streaming Giant Netflix Faces Yet Another Challenge
In the ever-evolving landscape of streaming entertainment, Netflix, once the unchallenged king of digital content, now faces a complex puzzle beyond...
December 1, 2023 -
`
Signs You Should Quit Your Current Job & Move On
You Don’t Feel Comfortable at Work Imagine spending the majority of your waking hours in a place where you feel uneasy,...
November 20, 2023 -
`
How to Adjust and Renew Your Portfolio
Investing in the financial world is like navigating an ever-changing landscape—constantly evolving, always shifting. The key to staying on track? Regularly...
November 18, 2023 -
`
Dr. Dre’s Divorce With Nicole Young: A Closer Look
When the beats of old-school hip-hop start bumping, Dr. Dre’s name reverberates in fans’ minds worldwide. Born as Andre Young, this...
November 12, 2023 -
`
Why Branded Content Is the Best Way to Connect With Your Audience
Have you ever found yourself deep in a compelling article or engrossed in a video series, only to later discover that...
November 5, 2023 -
`
Why the Gender Pay Gap Could Be Getting Worse | New Research Findings
At a time when women are making significant strides in various professional arenas, a new report throws light on a trend...
October 28, 2023 -
`
What Is a Bull Market and How Can Investors Benefit From One?
In finance, the term “bull market” is frequently used to describe a period of optimism, rising asset prices, and investor confidence....
October 19, 2023 -
`
A-List Power Couples Where the Women Make More Money
In an era of shifting gender roles and evolving definitions of success, it’s increasingly common to find celebrity couples where the...
October 15, 2023 -
`
Massive Price Cuts: Tesla Only Witnesses ‘Modest’ Sales Gain in China
Cutting Down Prices, But Not Cutting the Mustard? Summer 2023 brought with it a promise of sunshine and relaxation. For Tesla...
October 8, 2023
You must be logged in to post a comment Login