Personal finance is one of the most ignored yet very important subjects. It is never taught in most high schools and colleges around the world. The lack of such basic financial education is the reason why many young people grow into adulthood financially illiterate.
Financial education ought to start at an early age. Nonetheless, learning never ends regardless of age. There are financial experts who have dedicated their time to educate the public on how to handle their finances.
Here are 8 expert advice from the best financial advisors:
Self-control is a very important thing when it comes to dealing with finances. Unfortunately, a majority of people seem to lack this important virtue. According to financial experts, the ability to delay gratification is the beginning of proper financial management.
Lack of self-control leads to misuse of money such as constant engagement in impulse buying. It is also the same habit that keeps people enslaved in an unending circle of debt simply because they want to live above their means.
Learn how to budget
Financial experts emphasize the importance of budgeting. However, this is something that many people seem to ignore. A budget helps you to track your expenditure and know where exactly most of your funds are going.
Although it may seem to appear tedious and time-consuming, budgeting can save you a lot of money. It will instill you with spending financial discipline by restricting you on how much you should spend at a particular time.
Secure your financial future
It is often easy to focus on the present and forget about the future. When it comes to finances, planning on the future is very important because you never know what it holds for you. You could be having a job today and tomorrow you are rendered jobless by a stroke of a pen.
That’s why you should set aside a certain percentage of your income as part of your retirement plan. Explore various ways through which you can guarantee a secure financial future.
Saving is good but investing is even more important
As much as saving is a good idea, don’t stop there. Most financial experts agree that saving cannot make you rich if you don’t invest. You should explore ways to invest your money and get good returns. And it is not just investing, ensure you invest in the right way.
There are many people out there who are hungry for your money. They use all manner of schemes to lure unsuspecting individuals to invest in non-existing projects. They will promise you huge returns only to disappear after receiving your money.
Have an emergency fund
It doesn’t matter how many debts or bills you have to deal with every month, never forget to pay yourself. According to Brisbane’s leading financial advisor, having an emergency bank account is something that every person should do.
According to him, emergencies can drive even the richest person into abject poverty. Having an emergency fund shows that you are prepared for any financial emergencies. You will not need to sell your house or car to settle an emergency medical bill or lawsuit.
Learn to manage your debts
Many people enter into debts and never manage to come out. They keep on paying and borrowing money until it becomes part and parcel of their lives. This is unfortunate because you will never realize your financial goals when you are constantly in debt.
The best thing to do according to financial experts is to come up with a strategy to clear your debts. Start by clearing those that bear the highest interest rates.
Live below or within your means
One of the reasons why most people find themselves borrowing every time is because they are living beyond their means. There is no way you will constantly be in debt if you are spending less than what you earn. Try as much as possible to maintain a lifestyle that’s equivalent to your salary or income.
Protect your wealth
If you don’t want a situation where you will wake up one morning and find all your wealth has vanished, then you need to put up measures to protect it. One way of doing so is getting insurance covers for your assets and businesses.
About the Author:
Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.