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3 Simple Steps To Take Today Towards Financial Freedom

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No matter your financial situation right now, financial freedom is possible. You don’t have to struggle or feel controlled by your money. Here are 3 simple steps you can take today to get in control of your finances.

Photo by Alexander Mils on Unsplash

1. Set Goals

Writing down what you want and when you want to achieve it is an important step to making dreams a reality. Setting financial goals can help you feel more in control of your finances. They can help guide your financial plan and give you simple, actionable steps to take each day to move you closer to your goals. Once you know what your goals are, you may want to consider financial planning Souderton PA to help you reach them.

2. Automize Savings

Make saving money something you don’t have to think about. Set up a way to save money automatically every month. This can be by setting up an automatic transfer from your checking account to a savings or investment account. If you receive a paycheck via direct deposit, check to see if you can split the deposit into multiple accounts. That way every payday a portion of your paycheck goes directly into your savings account.

3. Transfer Debt

If you are working to pay down high-interest debt, such as credit card debt, see if a lower-interest option is available. It may seem counter-intuitive, but opening up a new credit card account can help save hundreds of dollars in interest. Many credit cards will offer 0% APR on balance transfers within a certain period of opening. Take advantage of the offer to transfer your debt to the new card. Then create a plan to pay off the remaining balance before the 0% APR offer expires.

Taking small steps consistently can have a significant impact on your finances and improve your feelings of control. Financial freedom is possible if you are willing to work towards it every day.

Tips for Choosing the Right Financial Manager

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Whether you need Asset Management or minor financial planning help, choosing the right financial manager is vital. Therefore, you must define your financial needs, research financial managers and their companies and estimate the fees you will pay.

Define Your Needs

Because advisors, planners, and managers have different specialties, you should define your financial goals prior to seeking financial help. For example, are you setting up a college fund or retirement fund or seeking a residual income? In addition, do you want to invest in physical assets, such as real estate, or intangible assets, such as securities?

Identify whether you seek steady long-term growth over time or high short-term gains for a specific purpose, and explore any moral and ethical standards that may affect your investment choices?

Calculate your initial investment, regular contributions and desired tax liabilities. Finally, evaluate your risk tolerance. For example, if you are young and starting a retirement fund, you may be amenable to higher risk, but if you are close to retirement, you may prefer lower risk.

Assess Managers and Firms

References, referrals and reputations are important. However, search for a fiduciary, as they are legally required to act in your best interest. In addition, identify your prospective financial managers’ longevity in their positions and how many different companies or funds these managers have worked for.

Review the manager’s investment record to identify steady long-term growth. Also, do not limit your investigation to specific periods, such as three years or a previous recession, as these periods may not reflect the advisor’s actual skill.

Assess the services the advisor and firm offer. Investigate the firm’s financial strategies because your manager will be subject to these strategies. For example, are there investment minimums; will the advisor buy and sell without your consent, known as discretionary management; and what types of investments does the firm prefer? In addition, will your moral and ethical requirements be respected?

Estimate Fees

Research the firm and manager’s fee schedule. Some charge a flat monthly or yearly fee, whereas others charge a percentage of your assets. Therefore, if you have $2 million in assets and your manager charges a 1% fee, you may be paying up to $20,000 in fees each year. This fee amount will also increase as your portfolio value increases. Finally, some services, such as retirement or college funds, may have an individual flat fee. Determine if the service you receive is worth the fee you will pay initially and over time.

After you identify your financial planning needs, research the companies and planners available and estimate your fees, you are ready to sit down with your chosen financial manager and start preparing for your financial future.