Everyone needs good financial education. There is no doubt about that, seeing that the lack of financial literacy cost Americans a walloping $450 billion in 2020 alone. We are currently facing about $1,634 worth of losses per person against $1,279 in 2019.
In this much-needed interview, Nick Wilson, an experienced loan officer, finance expert, and founder of AdvanceSOS—a loan connection service based in Miami, OK drops five powerful tips on managing personal finance.
Nick has seven years of experience in the financial sector and seeks to feed you a dose of his expertise in this interview. Read on to learn how to manage your personal finance;
#1. Highlight Your Financial Goals
From the get-go, you need to write out your financial goals for the long run. They must be specific (not general or vague). Every goal with financial consequences must be included, whether big or small. Your goals could include things as huge as acquiring a new property, adopting a child, relocating to a new city, or starting a new business. Or relatively smaller stuff like adding
a permanent household fixture.
Looking at all these goals, you’d realize that they’re all dependent on how well you manage your finances. In essence, you’d need to align your financial activities and choices to achieve your goals.
After highlighting your goals, you’d need to prioritize them. Like that, you’d attend better and faster to more important (or urgent) goals and achieve the others later.
Again, you can split them into long-term and short-term goals. Goals like buying a new property and paying off all your debts should fall under long-term goals. Whereas, goals like equipping your kitchen, fixing your car, and getting more frugal should come as short-term goals.
#2. Design Your Financial Plan
Your financial plan breaks down your goals into more realistic and achievable chunks. It’s a bit-by-bit roadmap that ultimately leads to achieving your goals. It could be something like creating a savings plan or an investment plan that’d yield you a certain amount monthly.
By covering these goals, you’d see results like greater savings and more revenue. This will motivate you and provide the resources to see subsequent plans through. Again, it’s important to prioritize your plans with your most urgent or important goals being planned for first, while long-term goals can follow after or be simultaneously attended to. For instance, while you diversify your income streams and create a savings plan, you’re indirectly satisfying your long-term plan of saving up to buy a new property.
#3. Create and Strictly Follow A Budget
A realistic budget is imperative for …….