Top 10 Simple Wealth Management Tips

Top 10 Simple Wealth Management Tips, Today we can use a money management like financial Solutions Wealth to investments and get advice from top wealth experts. However, there are some evergreen money management tips that everyone seeking to better their personal finances should keep in mind. Here are some top money management tips we suggest you imbibe in your lives.

Financial management is something a lot of us struggle with. Despite that, personal finance is such a hush-hush subject that most people avoid taking financial help from others. Today we can use a money management like financial Solutions Wealth to automate investments and get advice from top wealth experts. However, there are some evergreen money management tips that everyone seeking to better their personal finances should keep in mind. Here are some top money management tips we suggest you imbibe in your lives.

Pay Yourself First

Save money for yourself first! What that means is whenever you get a paycheck, the first thing you should do is put a part of it away as savings for yourself. You can do this by creating a separate savings account for this very purpose. Then you must completely forget the money you’ve put aside as savings and not touch it unless its for a major financial goal.

Create a Budget

Estimate how much you will spend on what and ensure you stick to your budget. We can all plan for most of our recurring expenses and not doing it is a financial sin. A budget will help you plan your expenses and ensure you don’t overstep your financial boundaries. Add all your recurring expenses down to the last dime and make this budget your line of financial control — one that you shall not cross under any circumstances.

Use Cash Instead of Plastic Money

Credit cards and debit cards can lead a lot of people into spending much more than they would otherwise. The thing is, when you swipe a card you are disconnected from the actual experience of spending your hard-earned money. A few number change in your account summary but that doesn’t really have the impact it should. So do yourself a favor and only spend money using cash for your day to day over the head expenses such as eating out, drinking with friends, shopping for clothes etc.

Create an Emergency Fund

A lot of people save up money and think that is the end of financial management. However, Wealth management requires a little more than simply saving money. The first step is, of course, saving money but post that you need to set aside a separate emergency fund. You see your savings are for you to use in case you need to pay for a well thought out lifestyle expense like your first car or maybe even to put some cash down for your first home. The emergency fund, however, is for real crisis situations such as medical emergencies, loss of a job or even a recession. Make sure you create a separate fund for this it could even be a Fixed Deposit to ensure you aren’t tempted to touch it outside of emergency situations.

Get a Wealth Advisor

Do not underestimate the benefits of an expert wealth advisor. A wealth coach is someone who understands finances really well and is in a position to give you a third-person view on how to save. You can Contact the financial Solutions Wealth Manger and talk to a wealth expert or read one of these interesting stories we’ve already got on our blog.

Automate Your Investments

Parting with your hard-earned money is hard — even if it is for your own good. This is why most people fail to invest regularly and inconsistent investments can often be the worst kinds of investments. You need to invest regularly to grow your wealth and a wealth management like financial Solutions Wealth can help you with that. The best part is it’s free and gives you the benefits of a scientifically sound, data-driven app along with human advisors who will guide you through the tough decisions. Once you automate your investments with the financial Solutions Wealth you can invest worry-free and do nothing except track your investment.

Set Financial Goals

Money is useless unless spent the right way. That’s why it’s important for you to set financial goals for yourself. What do you want to do with your money? How do you plan to spend it? Knowing these things is extremely important otherwise all the effort you’re putting into financial management will become pointless. Decide whether you are saving for a holiday, new gadgets, a new investment etc. Set a goal and then work towards it consistently using an app such as financial Solutions Wealth.

Diversify Your Investments

One of the oldest rules of money management is to ensure you don’t put all your eggs in the same basket. That’s what we are talking about here. Ensure you diversify your investments by investing in assets that suit your portfolio needs and financial goals.

Avoid Taking on Debt

Ensure you don’t take a loan unless absolutely necessary. Debt is something that is easy to rack up and rather difficult to pay off. So if there is something you can buy on cash by dipping into your emergency fund — do it. It’s better than taking a loan which requires a steady flow of cash and a consistent expense not to mention the exorbitant interest you will end up paying. Play it smart stay away from debt for as long as you can.

10 Basic Principles of Financial Management
  • Organize Your Finances.
  • Spend Less Than You Earn.
  • Put Your Money to Work.
  • Limit Debt to Income-Producing Assets.
  • Continuously Educate Yourself.
  • Understand Risk.
  • Diversification Is Not Just for Investments.
  • Maximize Your Employment Benefits.

Benefits Of Investing In SIP Mutual Funds

1. Affordable

SIPs can help you get the best of mutual fund investments in an affordable manner. You can start a monthly mutual fund SIP

2. Passive Income

A mutual fund SIP generates passive income for you which means the money you invest earns interest. Even the interest your SIPs generate will earn interest! This is known as the power of compounding*.

A SIP works for you while you sleep which means it generates passive income. As Warren Buffet said ‘Make money while you sleep’. That’s exactly what a SIP does for you.

3. Lucrative Returns

Mutual fund SIPs have the potential to generate lucrative returns over the long term. That is, after all, the goal of any investment at the end of the day.

Moreover, mutual funds are divided into various categories each of which has its own strengths and potential to generate potentially high returns.

Do You Need An Advisor For SIP Mutual Funds?

Investing a small sum of money monthly or quarterly in a diverse set of mutual fund SIPs can help you maximize your profits and minimize the risks.

However, it is crucial to invest in the right mutual fund SIP. ‘Right’ here means it is:

  • Suitable for your goals
  • In-line with your risk profile
  • Capable of generating reasonable returns

One might assume that it is easy to simply identify goals and choose a mutual fund SIP that fits it. But that may not always be the case. There’s always the risk of:

  • Over diversifying: having too many (bad) mutual fund SIPs
  • Under diversifying: less than optimal number of mutual fund SIPs
  • Not buying the right mutual fund at the right time
  • Holding on to underperforming mutual funds

You may be able to avoid these risks if:

  1. You have a trusted mutual fund advisor by your side
  2. You have time to research every mutual fund (1000+) every day

Option #2 may not be feasible for working professionals because they work from 9 to 5 every day, 5 or 6 days a week. But even if you do have time, an app like Cube gives you access to recommendations from a trusted advisor like Wealth First to help you invest better.

Wealth First has more than 2 decades of experience in the market and a track record of beating the market by ~50% since 2010. There are two benefits to this:

  1. They’ll help you choose mutual funds based on your goals
  2. They’ll give you selling advice in case a mutual fund underperforms

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