Simple financial advice can run the gamut of "save money" to "cash is king". Though, beyond having cash in hand to make large purchases, or to handle an emergency expense, simple financial advice may involve more than just those two tenets. Instead, simple financial advice can translate for many into basic financial advice. With a back to basics approach, it all focuses on the basis for financial planning: cash flow and net worth. First consider what it is you want from your money; that is, what you want it to do for you.
Making landmarks for your money will help you to create actual steps to meet your financial goals. They can then be classified into different lengths of time. For instance, 5, 10 and 30 year goals are one way, or short-term, intermediate and long-term goals are another way to classify them.
Retirement and paying off the mortgage are long-term goals, while saving money for a car is an intermediate goal. A short-term goal might be making sure you have money to buy your father a birthday gift next month. It is helpful to ensure that you do not over spend.
Once you have established your goals, and classified them, the next step in simple online financial advising is to take a step back. Look at your financial picture from a simple vantage point, where you may see the flaws or strengths of your ways.
When interpreting how you are doing in the financial sense, look at your cash flow. If you start out every month intending to save more money, but get side tracked by "unexpected" expenses that derail your best efforts, this snap shot can help you to regain more of your money.
Basically, cash flow is income minus expenses. Some simple financial advice, if you are experiencing a short fall every month, is to keep a spending journal. This will help determine what expenses can be cut easily, and what might be a little harder spending cuts to endure. Either way, as long as you can erase any overspending by correcting your spending, you should be in good shape once it becomes second nature.
Another simple tool to help establish the groundwork for simple financial advice is determining your net worth. This is simple to do. It is a matter of taking into account all of your assets and then subtracting out debt. This is your net worth.
Once you have determined your cash flow and kept the infamous spending journal, you can begin to cut unnecessary expenses. In addition, determining your net worth can help see how debt may be affecting your financial health also.
Simple financial advice will also dictate then how much you can put aside for your goals, such as embarking on parenthood (and saving for college too), investing in your 401k or Roth IRA or even going on a vacation. Once you have decided how to go about meeting these goals it is simple to just let this advice (and your hard work and introspection slid). But, if you find that simple advice just does not stick, consider hiring a professional planner to take over for you.
It could be that you may not feel quite comfortable enough about going about this task entirely on your own. Instead, even simple financial advice may say that it is time to hire the simple advice of a professional planner. Consider a fee only, credentialed planner who has taken the fiduciary oath. This will ensure that they only are paid by the hour, by you (not some big bank or investment institution) to sell services The fiduciary oath specifies that the planner will only work in your interest, not for their own gain.
Professional advice may cost money, though it is advice that has even more perspective than what you may be able to accomplish on your own. When you are looking to establish a new manner of managing your money for a new stage of life, such as starting a new career, starting out in the real world or just making more, money consider that the help of an outsider may be just what you need most of all.
Do make sure that, for instance, if you are trying to shore up finances to move to a new location, you want to make sure that you find a professional who has experience helping others in a similar way. Find out how they can help you before you hire them.
Simple financial advice is straight forward. Though, once you start working with the numbers it may become clear that you need to hire a professional. A professional planner can explain most thoroughly the ramifications of not saving sufficiently, or help maximize your raise.
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