Financial Management Tips

TriCord Advisors Inc. |

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 so much and all the 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 your own visionary. If you want to create wealth, you have to have a goal and the more specific you can be with your goals, the better.  Set a year-end goal, a five-year goal, and a retirement goal. Take those goals out periodically and examine them, adjusting them if necessary. Dream into your goals to find the motivation to keep pressing onward. Like anything else in life, you can accomplish more when working towards a specific goal.

2. Don’t be afraid to take risk with your investments. 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 and presents a wise opportunity. For most people, appropriate risk decreases as you near retirement, but taking reasonable investment risk when you are young in your professional career can pay off dramatically. If your investments fall flat, you’ll still have time to recover from your losses, learn from your experience, and begin again.

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. As you take care of your physical and emotional health, you are investing in your present and future. 

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. Create a budget.  There are a number of apps which are great for tracking spending and helping you easily build a budget based on your monthly transactions. If you don't track your spending, you won't be able to make informed choices regarding how you want to spend your money. Most everyone has easy changes to their spending which don't hinder their lifestyle but allow them to start making progress toward financial goals. Subscriptions and spending which does not bring you much happiness (like fast food because you forgot to pack a lunch) are good places to start. Your first adjustment does not have to be your morning latte or eating out with friends. The point of budgeting is cutting out the spending that is not build a life you love to free up cash for the things you really enjoy.  Advice like don’t charge more than you can pay off each month, stop eating out for all your meals, and don’t live above your means can sound like clichés, but they also are solid financial advice.

6. Save for future you. 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 download that app and use it to get you started, but remember, you are the one to drive the change your finances need.

*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 2022 Advisor Websites.