As a human being, living is inevitable. However, living with financial dignity is by choice. Many people do not realize the fact that an expert financial advice is crucial for leading a sound life without any hassles. Regardless of the stage of life, you need to seek the strategy from a financial advisor for day to day personal life or post-retirement life or for the healthy growth of a Startup. According to Jim Rohn, you are the average of the five people you move around. Therefore, it would be wiser to be among personal financial advisors to improve your exposure.
An online financial advisor removes all doubts about wealth creation and personal finance objectives and provides a clear guidance about how to work towards important financial milestones like buying a house, retirement, old age medication, child’s marriage, or children education.
So, let’s find out how does the professional advice separate the rich and the poor in changing their life?
Expenses Beyond the Affordability
Most probably, you too would have come across some people who have a palatial building to live in, a fancy car and frequent entertainment. These are the three major areas where you should concentrate to cut the corners. You can make a beginning with minimizing the entertainment like dining outside, frequent together or tickets etc. If you plan to spend wisely and judiciously, your healthy financial life is not far off. Then, you can think of alternatives for a car or a house.
Though it might look simple, it is a difficult task when you prepare a budget with honesty. When you envisage some additional expenses during the period, you need to economize to accommodate more important items of expenses. At the same time, you need to track the expenses very closely to ensure that you are not spending overboard. A close scrutiny of the spreadsheet would help you in identifying the areas of savings.
Build a Contingency Plan
You might think that you will save some amount after meeting all the expenses. However, a wise man plans otherwise. The primary objective is to set apart a portion of income towards the saving and utilize the remaining amount for the day to day expenses. The amount thus saved would be useful as a contingency fund when the need arises. Normally, it is estimated that the fund to the extent of six months’ income is ideal as a contingency fund. You can seek the tips from an online financial advisor too.
Avoid borrowing for meeting the routine expenses. By diverting some portion of non-essential items, you might be able to meet the expenses without borrowing.
Plan Smart Investments
Think beyond the retirement period. It is only 16% of the Indians plan for a retirement. Unless you plan your post-retirement life well in advance, the financial stability might go haywire. You can seek an advice from the financial wizard for a customized plan to suit your requirements.
It is a better idea to automate your long-term investment plans. A Systematic Investment Plan (SIP), as advised by the insurance and financial advisor would ensure continuity of the investment and would be beneficial in the long run. This will prevent your financial track ‘derailing’.
If you have a doubt as how do I choose a financial advisor, there are plenty of methods. There are many professionals in the market who can offer service online too if it suits you.
To wrap up, it is essential to realize the significance of the expert financial advice and seek customization depending upon your risk appetite.