Get your budget on track. This is the most important element needed for your financial success. It is very basic, but you’d be surprised by how many colleagues in my industry are drowning in credit card debt and unable to stick to a budget. I recommend the free app mint.com, which syncs with your accounts to show how your spending aligns with your proposed budgets.
Rebalance your portfolio. Rebalancing your portfolio will help you get your asset allocation back to where it was before the markets skewed your percentages. It has been proven that consistent rebalancing can help earn an extra 1% rate of return.
Read a book on personal finance. Picking up a book on personal finance will help introduce you to new ideas which can help jumpstart your finances and get you closer to achieving your goals. I recommend my own book which I wrote during Covid. It is the only book I’ve seen of its kind written by a CERTIFIED FINANCIAL PLANNER™ professional that offers excellent advice for those just starting out with their finances or those farther along. It utilizes powerful stories from those who have accomplished success to offer practical steps you can take with your finances today. You can buy The Money Success Guidebook, authored by myself, here.
Get a plan to eliminate debts and grow wealth. If you’ve got money in the markets, but you’re crippled by credit card debt, then I recommend paying off your debts first because that’s a guaranteed rate of return on the credit interest you’ll no longer be paying. Once you’re out of debt you can begin to really grow your wealth.
Remember the “why” behind your financial goals. If you’re accumulating wealth simply for bragging rights or because you like money, you’ll burn out on your goals quickly, but if you can picture the “why” behind growing your wealth, you will multiply your efforts. Picture the activities that really fuel you such as spending time with your family, owning a nice home, enjoying a nice vacation, and not having to worry about being able to pay your bills.
Financial freedom is an empowering reality and with the right knowledge and effort, you can make it a reality for yourself. Take action for your financial freedom today!
If you have a question or need help figuring out next steps for your financial success, schedule a free consultation with us at American Financial Planning. Call or email today!