Everyone needs a good financial education. There is no doubt about it, as the lack of financial literacy has taken a heavy toll on Americans. 450 billion dollars in 2020 alone. We are currently facing about $ 1,634 in losses per person compared to $ 1,279 in 2019.
In this well-deserved interview, Nick Wilson, a seasoned loan officer, financial expert and founder of AdvanceSOS, a Miami-based loan connection service, OK drops powerful five. tips on personal finance management.
Nick has seven years of experience in the financial industry and wants to bring you a dose of his expertise in this interview. Read on to learn how to manage your personal finances;
# 1. Highlight your financial goals
Right off the bat, you need to write down your long-term financial goals. They must be specific (not general or vague). Every goal with financial consequences should be included, whether large or small. Your goals can include things as huge as buying a new property, adopting a child, moving to a new city, or starting a new business. Or relatively smaller things like adding
a permanent household accessory.
Looking at all of these goals, you will realize that they all depend on how you manage your finances. Essentially, you will need to align your activities and financial choices to achieve your goals.
After you have highlighted your goals, you need to prioritize them. This way, you would take care of bigger (or urgent) goals better and faster and achieve the others later.
Again, you can break them down into long term and short term goals. Goals like buying a new property and paying off all your debt should be long-term goals. While goals like outfitting your kitchen, fixing your car, and becoming more economical should be short-term goals.
# 2. Design your financial plan
Your financial plan breaks down your goals into more realistic and achievable chunks. It’s a step-by-step roadmap that ultimately leads to the achievement of your goals. It could be something like creating a savings plan or an investment plan that would earn you a certain amount per month.
By covering these goals, you will get results like bigger savings and more income. This will motivate you and provide you with the resources to carry out subsequent plans. Again, it’s important to prioritize your plans with your most urgent or important goals being planned first, while long-term goals can follow or be supported simultaneously. For example, as you diversify your sources of income and create a savings plan, you are indirectly responding to your long-term plan to save to buy a new property.
# 3. Create and strictly follow a budget
A realistic budget is imperative for your financial management and your success. With it, you can distribute your money among different things in a way that helps you achieve your financial goals. A realistic budget should match your current spending habits and lifestyle.
You can set a budget for food, vacation, etc. so that it is clear and easy to follow. A budget helps you avoid overspending. In addition, it encourages you to adopt good financial habits, giving you a big financial boost.
# 4. Reduce debts
Debt is one of the main mitigating factors for financial stress. Having said that, you might want to avoid debt as much as possible. Do not take it if it is not very necessary or urgent. Here’s a golden rule: never spend more than what you earn!
Once again, prioritize repaying your debts. Help them as you pursue your long term goals and allocate more funds to them to make sure they don’t get in your way in the future. Borrowing can be useful sometimes, such as when it is used to buy assets or take out a mortgage. However, you should look for cheaper options like leasing if they help you stay on budget.
# 5. Find financial expertise
After you start to see applauded financial results by following the tips mentioned earlier, you should naturally start to think about investing and building lasting wealth. It’s time to get and take sound financial advice!
Look for organizations around you that hold seminars on finance and investing. Register and participate. Or sign up for paid sessions with experienced financial advisers. A good financial advisor can help you analyze the risks of potential investments or even guide you in creating a budget.
The powerful personal finance management tips shared above will help you maximize your finances. Nick Wilson is the CEO at AdvanceSOS. As a seasoned loan officer and financial expert, he puts his rich financial expertise to work for his business. Youtube channel. Follow and Get Involved to learn more about managing your finances.