Category Archives: Everyday Ways To Save

Financial Advice for Wealthy People

Wealth (officially defined as the abundance of valuable resources) can be earned and/or inherited. However, regardless of how one manages to secure wealth, if they neglect proper management and maintenance, the money is unlikely to last for very long. There are countless horror stories of people running through large sums of money in relatively brief time periods because they misused their resources and failed to maintain healthy income streams.

An art to money exists; there’s an art to earning wealth and an art to maintaining wealth. The implementation of various financial strategies moreover ensures that the production of valuable resources overpowers the consumption of valuable resources. This, in and of itself, is paramount knowledge for individuals who wish to maintain the wealth they’ve inherited or worked hard for.

Invest, Invest, Invest

According to Investopedia, some of the best investment options for wealthy people include stocks, bonds, and commercial real estate. Generally, stock market investments are considered to be riskier, due to the somewhat 50/50 odds of gaining or losing money. However, there are different strategies which people have to predict certain trends in the stock market and the wisdom in certain investments. Bonds are somewhat similar to stocks, but like the former, with the proper judgment calls, this form of investing can be quite lucrative and beneficial.

Commerical real estate investments come with many options. For instance, by purchasing various blocks of homes, the investor can then rent out rooms or apartments. Over time, the income from tenants will more than pay for the original price of the blocks. This is also a form of passive income, which is also critical for building and maintaining wealth.

Maintain Multiple Streams of Income

Hanson McClain affirms the importance of multiple income streams. By maintaining multiple streams of revenue, wealth is not only preserved, but also increased. No matter how much money someone has, there are still certain guaranteed expenses, such as the cost of living, bills, etc. Truly wealthy individuals have enough money to stop working and still live comfortably; yet, in a somewhat converse paradox, people with the foregoing levels of wealth usually continue working, or at the very least, they have passive streams of income which allow them to continue making money without trading time for profit.

Put Aside (at Least) 20% of Your Earnings

CNBC advises wealthy people to put aside at least 20% of earnings. Saving is always an excellent financial habit, regardless of one’s economic status, yet it is truly critical for wealthy people. Having an increasing amount of funds put aside in the event of emergencies or other unforeseen occurrences is always important.

Saving money furthermore promotes discipline and helps to counteract the temptation to spend, spend, spend. Remember: as one’s net worth, assets, opportunities, and bank accounts flourish, their savings should be following suit. Many wealthy people also have money in multiple places: savings accounts, on-hand cash in safe boxes, etc.

Nine times out of ten, having money stashed and saved in more than one location is advisable.

Authored by Gabrielle Seunagal

Financial Advice for Married People

While many people are often given advice on how to manage their sole finances, the game somewhat changes after marriage. This change is not bad, but simply a reality of life. Therefore, learning how to manage, protect, and grow funds with one’s spouse can be invaluable. Every marriage is different and no two couples are exactly alike; nevertheless, the awareness and application of the forthcoming advice will certainly engender fruitful and properly managed finances.

Handle Money Both Separately and Together

When two people are married, the most common questions regarding money often pertain to bank accounts in one way or another. Chances are that both individuals maintained their own personal checkings and savings accounts prior to the marriage. After getting married, couples often wonder whether or not they should create a joint account or continue working with their current personal accounts. The correct and proper decision just so happens to be all of the above.

Marriage is a partnership. However, within said partnership, it is still important for both parties to feel as though they have an identity outside of one another. The Balance affirms that married couples should have a joint, shared account and then their own personal accounts. More often than not, the joint account can be used for expenses which both individuals in the marriage will incur. Examples of the previously mentioned expenses include (but are not limited to) rent, mortgage payments, utility bills, etc. The personal accounts which both spouses had outside of their marriage can now be used for individual expenses, such as going to the movies, dining out, shopping, etc.

Ensure that Both Parties are on the Same Page

Arguments over money are some of the leading causes of divorce and failures within marriages. In many instances, this problem can be counteracted prior to its inception; this happens via communication and ensuring that both spouses are on the same page regarding financial matters. Discussing financial goals, investments, accounts, and potential forthcoming purchases is extremely important in a marriage. Both parties should be absolutely clear on where money is going, how much money is leaving accounts, and how much money is coming in.

Moreover, both spouses should be comfortable with money and the associated feelings. Different individuals have different perceptions regarding monetary capital. Therefore, seeking out the services of a financial advisor may be a good idea if spouses are unable to come to similar terms regarding money, its management, or other associated issues.

Steer Clear of Debt

Maintaining joint and separate accounts whilst being on the same page regarding finances is all well and good. However, the benefits of the foregoing advice can quickly be counteracted if spouses fail to steer clear of debt. As the ultimate foe of financial prosperity, debt can wreak serious havoc on bank accounts and marriages.

This is why both spouses have the obligation to live within their means and be honest with one another and themselves. Sometimes, putting aside money and then paying for something in cash is a lot wiser than charging it to credit and then being unable to foot the bill when it comes due.

 

Authored by Gabrielle Renee Seunagal

Financial Advice for Less Well-Off Individuals

Life is different for each and every person. People have different work lives, different families, and different situations. Some people make millions per year while others make thousands. Some individuals are able to independently support themselves which other may receive assistance from friends, relatives, or even the government. Despite the stereotypes and assumptions which are usually made regarding high-income people and low-income people, the great equalizer comes in the form of benefits of financial advice.

Granted, financial recommendations for someone who earns $100,000 annually will be different from a person who earns a yearly income of $10,000. Nevertheless, the following strategies and hints are great for less fortunate individuals.

Engage in Extremely Frugal Money Management

When funds are tight, frugality is absolutely paramount. While saving money can be difficult when funds are low, there are generally certain steps which can be taken to truly get the complete bang for one’s buck. KNS Financial has some excellent tips: first and foremost is seeking out banks which do not bill monthly fees or otherwise require customers to maintain a certain amount of funds within the account. There may also be certain banks which choose not to bill low-income customers with overdraft fees.

Another excellent way to stretch money is selling items which are in reasonable shape, yet not used very frequently. Some people do this by having yard sales, listing their items on Craigslist, or pawning them at applicable shops. Upon attaining these extra funds, putting them aside is a really proactive way of getting used to saving money.

Other simple, yet effective ways of frugally handling money include, but are not limited to, buying groceries on sale, walking (or carpooling), using utilities conservatively, and unplugging devices which are not being currently. This can truly add up and save money, especially when done habitually.

Look for Relatively Inexpensive Ways to Increase Income

While saving and being frugal with current funds is a great first step, it will only do so much for low-income people. The best thing that less fortunate people can do for themselves is increase their earnings. In 2018, there are a variety of available options, even for individuals who were recently laid off, currently in between jobs, or otherwise unemployed. The gig economy is a truly innovative and lucrative tool for people to take advantage of. Those who do not have computers or laptops in their home can go to the library and use the internet to create profiles on freelancing job boards such as Upwork, Freelancer, or Fiverr. Other options include driving for Lyft or Uber or renting out rooms on Airbnb.

A Final Word

At the end of the day, rising above poverty ultimately entails two life changes: decreasing expenses and increasing income. Ideally, doing both of these things simultaneously is the best course of action. Not only are lowered expenses and surging income a blueprint to escaping from poverty, but it also sets less fortunate people on the track to achieving wealth. Although Rome wasn’t built in a day, it did come into being with consistency and time.

The same dynamic applies to the aforementioned steps which will eventually engender the rise from financial hardship to financial prosperity.

 

By Gabrielle Seunagal

Basic Money Handling Tips

The ability to handle money appropriately has never been more imperative. In this day and age, people who are aware of just the most basic ways to manage capital do significantly better than individuals with poor money management skills. The perks of managing capital appropriately are well documented. Any individual who is serious about his or her financial future would do well to learn some of the most basic, yet paramount money handling tips.

Don’t Spend Every Dime You Earn

Virtually everyone has heard someone say that they want to “make more money.” The desire to increase one’s earnings is universal, however, the manner in which one handles the extra capital is what truly makes the difference. Far too often, when someone’s earnings increase, so does their lifestyle. For instance, an individual who receives a raise from his or her boss may then feel the inclination to spend more money. In their mind, why shouldn’t they? They’re making more money and can afford to be less frugal, right? Wrong! Far too many people have this mindset and it hinders them from considerable financial growth.

As the old saying goes, “if you make a million and then spend a million, you’re still broke.” A person who is serious about handling money appropriately should first and foremost put more money aside towards savings or fruitful investments when they see an increase in their earnings. This is not to say that one can never upgrade their quality of life, however, it needs to be done in moderation and with steady progression. Anything more is a recipe for financial disaster.

Don’t Go Into Debt

Similarly to saving and investing capital, landing in debt is another one of the most common financial traps that many people fall into at one point or another. It is only human nature to desire nice things and enjoy a certain lifestyle, however, the finer amenities of life must be earned. This is a concept that many individuals fail to realize. The temptation to swipe one’s credit card repeatedly feels great until the bill comes due and the person can’t pay it. All of a sudden interest kicks in, on top of the original debt, and the cost of a $400 wallet is now $20,870.76 by the time it is completely paid off.

Debt and interest are the enemies of financial success and should be avoided at all costs. Those who wish to experience the best that life has to offer must do so by increasing their earnings in one way or another. There are many ways to create passive income streams, including driving for Lyft or Uber in one’s free time, renting out spare rooms on Airbnb, or doing freelance work on a site like Upwork. Regardless, debt should never be incurred. Persons who are already in debt should work to pay it off immediately.

A Final Word

While the list of money handling tips could go on indefinitely, not spending every earned dime and abstaining from debt are two of the most crucial methods of achieving financial success. Although the foregoing changes can be challenging at first, they ultimately depend upon one’s level of discipline, wisdom, and execution.

Authored by Gabrielle Seunagal