Be Your Own Personal Finance Advisor: 7 Sectors To Consider While Controlling Your Finances.Finances can either make you or break you. Dealing with the money and deciding how to go about it, is a time consuming activity, but a must.When becoming your own financial advisor you should consider these 7 sectors.
Follow A Budget And Set Priorities
Budgeting is important, why ? Because how would you know where your money is going if you do not have a budget? As you can see the spending and saving goals if you do not know where your money goes? You need a budget in order to keep a check on your finances and plan it according to the priorities set.
Look For Investment Opportunities In Stocks, Bonds And Mutual Funds
Investing In Stocks
The market may be a good place to turn savings into wealth. If you want to save money, invest it in stocks and use it for long term goals such as retirement.
Investing In Mutual Funds
A mutual fund gets money from hundreds of various investors and builds a collection of equities, bonds, property or other securities in accordance with its Statute. Each investor in the fund gets its piece.
Investing In Bonds
Bonds can be a stable and relatively secure income, but only if you really
understand what you are buying.
Insurance Plan Health, Car and Home
Too many people are convinced that paying too much for life and disability insurance, either through coverages such as auto loans, etc. does not make much sense. What they dont realize is that it is important that you have enough insurance to protect your dependents and your income in the event of death or disability.
Home insurance can become a nightmare if it is not properly handled. It is better to expensive and confusing - until you use it.
Life insurance is important for financial planning. This is a must for anyone with dependents affected by the financial loss.
Health insurance is one of the most important insurance in the individual market and one should understand what is the best way to get the value for your money.
Depending on your retirement and your needs.. Be honest about how you want to live after retirement and how much it will cost you. Then, calculate how much you can save for retirement by completing the Social Security and other sources of income.
Real Estate Planning.
This ensures that your family and financial goals are met after his death. Its assets, including investments, retirement, insurance, real estate interests and projects.
Inheritance or Will
70% of Americans have not made their will. If you have dependents, you would be needing a will regardless of how much you have earned and saved. You are actually protecting your loved ones by writing a will.
Short Term And Long Term Goals (Tax, Credit Cards,Loans and Billings)
Credit card debt has become a major obstacle to economic production. It is easy to use these small pieces of plastic, but very difficult to pay money along with the interest. One should always pay credit debts, and save in accordance with the amount of loans, credits etc.
Taxes are paid to the government as interest-free loans. A major amount of your money is deducted in the shape of taxes. So keep a check on what you buy and spend so that the tax rate is lower. Also pay the taxes on time in order to avoid an audit.
Its not impossible to be able to manage your expenses on your own, in fact its very doable. Just remember to not focus on one particular area but rather keep all the above mentioned factors in mind if you plan to become your own personal financer.
by: Derick Porter