What would it look like if you started planning your finances with as much effort as your put into planning your business? This may feel like another item to add to your never-ending to-do list, but planning your finances can significantly impact your overall wealth. And, don’t forget, at the end of the day you are the CEO of your financial well-being.
Where to Begin?
Assessing your current financial situation, much like an incoming President or other Executive would arriving at a new company, is the simplest way to start planning out your finances. You and any other Vice Presidents of your household should start by taking an audit of your current monthly spending. For example, how much do you pay for your mortgage or rent? How much goes into insurance costs? What about monthly spending for bills (gas, electric, water, phone bills, etc.)? Once you have a running list of your monthly expenses, you can clearly see where the majority of your money is going. This will help you prioritize or see if there’s any room for extra savings opportunities.
After taking a closer look at your expenses, you can easily see if you are spending more money than you’re making. Then, if you are at a deficit, look at those extraneous expenses you could potentially cut back on (i.e., not eating out as much, cutting down on subscription services like Netflix or satellite radio).
Look for Opportunities for Additional Income
Just as some businesses begin to sell new product lines or expand their sector, the same can be done for your personal life. Do you have any hobbies that you could turn into a side job? Or could you consult in your spare time? Perhaps you’ve run a successful law practice and could provide consulting services to new attorneys entering the field. What about a photographer with a great eye for ‘the shot’ and thinking of opening a photography business? Any additional income sources can do wonders for your finances. It doesn’t have to be a huge endeavor. Still, anything you spend a great deal of time doing or consider a passion project could potentially become an additional revenue source for you and your family.
Research and Begin Investing Your Money
Another way to boost your personal finances is to invest in various stocks. Just like business owners have investors, it’s essential that you invest your finances so that you can build on your savings. Investing can be intimidating at first, but that’s where we can help. Check out this blog we wrote that talks about how to be a smart investor to learn more.
Do You Have an Emergency Fund?
Do you have a separate savings account set up for unexpected expenses? Having an emergency fund can also include ensuring you have insurance policies set up in case anything ever happens to you or your family. Just like your business will have coverages and plans in case of a fire or natural disaster, you should also prepare your finances for any uncertain event.
Know What You’re Saving For
These investments you choose to explore can help you work toward your financial goals. Every business has quarterly and yearly projections and goals, so why should your finances be any different? Are you saving to help put your grandkids through college? Maybe saving up for your dream vacation? Want to retire at a decent age and be able to travel the world? A financial professional can help you align your priorities, and work toward them using financial tools like 401K planning, investments, wealth management and much more.
Consider Hiring an Advisor or Planner
In today’s economy, saving and financial wellness are more important than ever. A recent study cited that 56% of Americans said the “three Ps” of protection, planning and preparedness are most important to them during economic uncertainty.
Our team is here to make you feel confident in your financial well-being. Let us help you prepare you for tomorrow without sacrificing your ability to experience life’s rewards today.
Our team would love to sit down with you and carve out a personal finance plan that fits your specific circumstances and goals. We specialize in helping our clients and partners grow their accounts, so give us a call today or schedule a complimentary consultation with us to get started.
Investments are subject to market risks including the potential loss of principal invested. Asset allocation and diversification do not assure or guarantee better performance/profit and cannot eliminate the risk of investment losses in declining markets. Past performance does not guarantee future results.