Are you worried about the future? Do you want to get your finances in order and be financially secure? Even though it can seem challenging or even unattainable, a personal finance app can take the stress out of building a financially secure future. The financial planning app empowers you to build a SMART financial plan and make progress towards achieving your financial goals. GuardianWealth personal finance and wealth app starts with a free financial health diagnostic, so you start by knowing where you are financially and a digital advisor helps you figure out what you need to do to get to where you want to be. You can’t plan without a financial destination in mind. Here are a few tips that will guide you to a future with financial security:
An important tip to consider is to create a financial calendar. Juggling everything all at once can lead to overwhelm. Create a financial calendar, and set appointment reminders for the important money moments that come up, like paying bills. Having a financial calendar is one step to get you to the financial security you desire.
When trying to get ahead in your financial journey, the best thing you can do is start budgeting. Budgeting makes all of the other personal finance goals you have attainable. It’s easy to spend money on unnecessary things, which is why a budget can help you save money.
Make sure you write down all the income that you will receive including your salary, benefits reimbursements, any bonuses, and more. You can then compare all of the expenses you may need to pay to ensure the money you receive is enough to cover your upcoming obligations. A free budget planner is a great place to start, you can easily set your budget and track your expenses.
Always be prepared for the unexpected. An emergency fund is money set aside to help you in times where unforeseen events occur that could affect you financially.
No matter how much debt you have, it’s vital to save up any amount of money from your salary every month to put in your emergency fund. Having at least three months of living expenses saved up is good, but six is better. You can do this by creating an automated system that adds money to your separate emergency fund every single month. If you find it difficult to save, you should explore saving with.
It’s important to set short-term goals in order to achieve the ones that are long-term. Successful people often plan and set goals. Whatever you want to achieve, the first step you should take is writing it down in order of priority. Having a plan and being goal-orient is a huge step toward taking control of your life and improving your financial security.
If the short-term goal is to save up and pay off your student loans, then set new goals after achieving that one. Consistent planning and achieving short-term goals helps you feel confident that you can achieve the longer-term ones. Plan for life milestones with a goal-based approach to savings.
The number one obstacle of getting ahead financially is having costly debts that are unpaid. These debts may be student loans, credit card debt, or personal loans. It’s important to save as much as you can to pay off the debts with the highest interest rate. There are two methods that you can use to pay off these costly debts: the snowball method and the avalanche method.
The snowball method is about paying off your smallest debt first and then working your way up, thereby paying your largest debt last regardless of any interest rates. The avalanche method, on the other hand, is where you pay off the debt with the largest interest first, thereby handling debt with the lowest interest rate last.
Getting an early start on your investment journey is more important than investing large sums later in life. In a perfect world, you should begin investing as soon as you start earning. Now, I know most of us have probably crossed that line, so the next best time to start is now.
This is where the time value of money comes into play. Consider two young investors: Investor A saved $1000 a year into her account between the ages of 25 and 35, then leaves this money in the investment account until she turns 65. Investor B starts saving the same amount at age 35 until she turns 45 and leaves this amount in her investment account until she turns 65. Both investors have put in $120,000 into their accounts. Assuming a 7% annual compound interest, Investor A will have an ending balance of $1,444,969 in her account on her 65th birthday, while Investor B will have $734,549.
Starting early creates a solid foundation for your financial goals and helps you grow your funds in a low-risk, high-yield strategy. Start growing your wealth with a proven and time tested investment strategy.
The key to establishing financial security is to only borrow what is needed. Borrowing should only be used for investments, not whenever you feel like living a lifestyle you can’t afford. Borrowing money for investments is relevant since it leads to a higher profit than the actual borrowing costs. You can invest in yourself as well, such as funding your education or starting a business, or you can invest in stocks and bonds.
The goal here should always be to borrow as little as you can. This is because the less you borrow, the more money you will have to pursue other goals.
It doesn’t matter how old you are or what stage in life you’re at. Saving for retirement is an extremely important part of your journey to financial security. Try to get in the habit of saving early.
In situations where you have to pay off debt, you can start small and work your way up after your debt is paid. This means that even putting 2% or 5% of your salary aside for retirement and increasing that percentage after you’ve paid off your debt is vital. However, if your employer offers employer-sponsored retirement programs like the 401(k) plan, you should contribute to it.
Getting insurance is essential to protect your dependents, your income, and your property in case of accidents, damages, death, or disability. You should make sure you have the right kind of insurance to fit your specific needs. Health and automobile insurance are compulsory for your wellbeing. You should also have homeowners’ insurance if you own a home and renters’, disability, life, and more depending on your situation.
Having insurance protects you from otherwise costly expenses that you may incur, and you can save money by getting quotes from different insurance carriers, comparing them to find the best rates.
GuardianWealth was built by financial experts to make investment advice accessible to all Americans. GuardianWealth has built an algorithm that takes your profile, financial status, and investment goals. And then builds a personalized financial plan. What makes our personal finance app unique is that it combines personal finance with goal-based robo-advisory services.
Our platform will reduce your financial stress and help you set goals without the constant overwhelm. GuardianWealth will also help you prepare strategically for life’s financial milestones as well as develop a customized financial plan to be better prepared for whatever may affect you. Begin your journey toward financial freedom with GuardianWealth today.
If you are on a journey to be financially independent and manage your money for the future, it’s important to know where your money goes and how much you spend and for what. You should also be aware of how much you save and make smart choices when it comes to your finances. These 10 tips will help you do this.
Using a personal finance app can be beneficial in your journey to financial security. GuardianWealth is a great place to start because not only does it use a goal-based approach to saving and investing, but it also creates a financial plan for you to achieve your financial aspirations.