SAVING: The golden rule of personal finance is “Pay yourself first.” Before you go about making investments in businesses ensure that you are paying yourself and making an emergency fund. This is necessary to provide you with a safety net in case you lose your sources of income and fall upon rainy days. The safety net will also remove some of your financial stress and allow you to think clearly and objectively, not allowing emotions or external pressures influence your investment decisions.
GET INSURED: After you have saved up for a rainy day you need to ensure nothing touches that. It’s critical to be in good shape to truly enjoy your money. Medical expenses can drain your savings in days, that’s why it’s crucial to buy some medical insurance as your first investment. This is where a Wealth Advisor can step in to help, Wealth Advisors will give you an overall plan of how to go about your investments and almost all of them will advise you to buy health insurance first.
CONSULT A PROFESSIONAL: Now that you have a strong foundation with your savings it’s time to consult a professional, namely, a Financial Advisor. A Financial Advisor helps you set financial goals and will look at your total income and expenses to come up with a realistic strategy to achieve your financial goals. Financial Advisors are professionals who study the market and find you the investment options that are suited to your needs. Ensure that you find a Financial Advisor that you get along with and has the required competencies to handle your money. Make sure you check their credentials and their track record. Build a strong relationship with your Financial Advisor and be honest about your finances with them.
COME UP WITH A STRATEGY: Once you have picked your FInancial Advisor it’s time to sit down and come up with a plan to achieve your financial goals. The Financial Advisor will provide you with multiple strategies to achieve your financial goals, each with their own pros and cons. The Advisor will discuss these strategies with you to assess your risk capacity and your investment horizon to finally pick one based on these parameters.
FOLLOW THROUGH: Once you have chosen the strategy you would like to employ be confident in your decisions and start investing. Make sure you remain consistent with your investments and keep your eyes on the objective. Keep in touch with your Financial Advisor to make sure you are on track to achieving all your financial goals.