Personal Financial Tips for Money Managers of all Ages

Personal Financial Tips for Money Managers of all Ages

Keeping your finances in order is a lifelong pursuit, requiring perseverance and discipline. From the early days of building your credit rating with introductory credit cards, to retirement planning for your golden years; successful money managers lean on proven financial strategies.

Your path to financial independence/security includes consistency, but there are important things to do at each stage of your financial life. Building credit, protecting it, and using it wisely are each important, but you’ll work harder establishing yourself as a young person. Once you’ve amassed good credit references, your goal should be to protect your positive rating. At each phase of life, you’ll draw on different forms of credit to realize your financial goals. Loans, credit accounts, mortgages, and other forms of financing each serve consumers in different ways, so it is important to keep your options open throughout your life.

Keep these financial tips in mind as you set the stage for lifelong financial success.

Plan for the Worst

Budgeting is a precise science, accounting for every anticipated expense. However, even those dedicated to crafting sound budgets experience occasional difficulties. In many cases, it’s life’s unexpected expenses that push well-defined budgets beyond reasonable limits. To offset unforeseen financial hits approach your finances with a safety net in mind. While hoping for the best always consider the worst possible financial outcomes and plan accordingly.

Maintaining a reserve or emergency fund is a good way to hedge against unexpected costs. If you lack emergency resources, start setting up your fund by setting aside funds each month and dedicating the money to your reserves. Draw on the financial cushion as needed, but only for bonafide cash crises that call for emergency funding.

Build and Protect Credit

Establishing your credit rating and protecting it from negative entries is a deliberate process. Early on, when you have few credit interactions to point to, it can be helpful to use a credit card to build a history. Even when companies are hesitant issuing standard cards, they are generally willing to extend terms for a secured line of credit. Cards like these depend upon prepayments, which users draw from. Though they don’t give you the same flexibility to rack up charges, as a regular credit card would, the secured versions nonetheless add positive repayment data to your personal credit rating over time, which will slowly build up your credit score.

Loans and credit cards are not the only items that influence your credit score. Credit reporting agencies also look at other forms of debt and money management. Utility bills and mobile phone contracts, for example, can bump your rating upward or downward, depending upon your payment history. To maintain the best possible rating, address every obligation timely – even those that don’t seem important. When short-term difficulties do arise, work directly with lenders to come to terms. Waiting until collections or foreclosures are in progress is too late. By that time, your delinquency has been reported and is part of your official credit record and can take years to clear off your credit history.

Establish Benchmarks

Your financial life unfolds on a continuum, so it is important to keep the ball rolling forward. In order to stay on track, set financial goals for yourself, including savings and investment objectives. One simple strategy is breaking your life into decades, which feature particular financial benchmarks. Your twenties, for example, might include opening investment accounts and beginning to make contributions. In your thirties, acquiring real estate may be your goal, so saving for a house becomes a priority. As the years roll on, retirement concerns and other wealth building efforts take center stage, calling for adjustments to your financial approach.

Without a clear plan, your financial future is left to chance, which can have catastrophic consequences. With actionable goals on the record, however, your financial success becomes intentional, leading to consistent returns and security. By building and protecting your credit rating and creating a financial cushion, you’ll always have the tools you need to overcome financial difficulties and borrow for your dreams.

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4 comments

  1. Thanks for the information. My husband and I have recently acquired quite a bit of money, but we don’t know what to do with it! I’m going to follow your tip about “building and protecting credit”. That should ensure that we can purchase things using our credit if we ever have to. I’ll also look into hiring a wealth management service to help us out. They should be able to keep us from spending our money on frivolous things! Wouldn’t you agree?

    • Jonny

      Haha, frivolous means something different to everyone!
      It’s always a good thing to have good credit, especially in those times when financing is needed, as you eluded to.
      Wealth management services can be a great option, so long as they come with strong references.
      Thanks for commenting!

  2. Great post! Thank you for sharing. I’d like to hear more from you.

  3. nice article for money managemer, how to invest and where to invest is big question arise in everyone’s mind. but by the poper guidance from people like you really helps.

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