Wealth planning is something everyone thinks about no matter how old they are.
Here are 5 key pieces of financial advice that can change your life!
Wealth planning is something that doesn’t seem attainable to the average person these days. With up to 78% of full-time workers living paycheck to paycheck, it’s hard to think about planning for retirement.
You know that it’s time to do something about your finances, but you’re not sure what to do. If you don’t do anything about it, you could be ‘chasing money’ into your 80s.
The truth is that you deserve to live comfortably in retirement, but it’s going to require a little bit of discipline and work.
Read on for the top five tips to build wealth and plan for the future.
Set Your Financial Goals
Before you do anything, you need to set your financial goals. Maybe you’d like to get out of debt or save for retirement.
Whatever your financial goal is, you need to take a short-term and long-term approach. You also need to know why you’re saving money. That will help you stay motivated to stay on track.
Otherwise, it’ll become too easy to dip into your savings when the money is tight.
Buy Your Car with Cash
The biggest killer of wealth planning is your car payment. Yes, zero interest seems incredibly appealing. Financial Guru Dave Ramsey pointed out that the average car payment is $499 per month. To make matters worse, that car loan is probably five years.
That much money invested could be as much as $5 million by the time you retire.
If you have to buy a car, buy used. Used cars don’t have the stigma they used to. Today’s cars are much more reliable and you save more money in the long run.
Plus, you’re more likely to be able to pay cash.
Then that $499 car payment can go towards other investments.
Track Your Spending
Think of running your financial life like you’re running a business. With a business, you’re responsible for planning, sales projections, profit and loss statements.
Businesses turn to software such as Price&Cost financial tracking to estimate project costs track budgets. Managing budgets is a critical part of the survival of a business. Most people don’t think of their financial lives this way.
Some people even have no idea where their money goes.
If you fall into this category, it’s time to start tracking your spending. Write down and track where every dollar goes, that includes anything purchased with cash.
You can also adjust your spending to allow for unseen circumstances.
Give, Give, Give
The average person has become so used to just getting by each month, they’ve forgotten what it’s like to donate money.
When you give, you are telling money that it does not have power over you.
Studies have also shown that giving makes people happier.
The great thing about giving is that it doesn’t have to be a lot of money. You can start small. You can start with 3% of your income or if things are really tight, just a few dollars a week.
Start Wealth Planning Now
It doesn’t matter how old or young you are. The key to successful wealth planning is to just start.
Starting now can be the difference between retiring comfortably, or struggling to make ends meet in the twilight of your life
Need more financial advice? Read our blog for tips to build wealth.