Financial
Planning and Management Advice
Financial
Planning and Management Advice
As
the famous Chinese philosopher, Confucius, said: "A long journey
starts but with a single step". So too is financial planning. However,
here are a few simple "steps" that might help you.
Investing
- Put a small amount
aside regularly --- It seems so simple, but the truth is the beauty
of compounding can help you tremendously. Of course, the earlier you
start, the greater the benefits.
- Be an informed
investor --- Knowledge is a wonderful thing, and it is so easy to
find out the information you need. If you don't want to study and
learn about the various investments, consider hiring an outside manager
and having them do the investing for you. Any way you do it, begin
now and make it a habit.
- "Eggs in
a basket theories" --- The old adage of "don't put all your
eggs in one basket" still holds true, but some may argue that
it is better to know something about that basket. Again, knowledge
here and a frank discussion of your "comfort" level will
allow you to form a basis for sound financial planning that is appropriate
for you.
Many of our clients
prepare an annual balance sheet (assets minus liabilities or all your
good stuff minus all your bad stuff). This will allow you to keep track
of how you are doing with your investments and if you should consider
changing some of your strategies.
Controlling your
expenses
- Credit and credit
cards --- Try to wait until you can pay cash for things which decrease
in value. Purchasing a house on credit usually is a sound idea while
purchasing furnishings is not. Use your credit card only when absolutely
necessary. Have a plan on how to pay off that card as soon as possible
before making credit card purchases. Use your card for convenience's
sake and not for permanent financing. The interest rates are much
too high.
- Understand the
cost of credit --- Analyze credit costs and understand what a difference
a percent in interest can mean to you over many years. This is true
not only in the cost of items but in returns that you receive from
you investments.
- Review annually
your insurance costs --- Continually determine whether you are over
or under insured with all your possessions. Talk frankly with your
insurance agent and consult your agent when buying or selling any
property.
How
much would I have to invest today in order to have $1,000 next year
at this time?
Call us: 620.342.7435
We don't charge
for an initial conference. We can discuss your concerns and determine
just how we can help you the best. Again, our primary responsibility
is to make sure we can create value for our clients.
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