Everyone can benefit from the objective outlook and expertise of a financial planner. Unfortunately, not everyone has the extra funds to spend on hiring one. Good thing there are many financial planners who are willing to impart pieces of actionable advice for free. Here are some of them.
Growing Savings
Unsplash | Keeping cash physically will mean that it loses some of its value in the long run due to inflation.
TFC Financial CEO Renerr Kwok has one simple piece of advice for people that she also gives her own daughter, ‘word hard and save most of your money’. While this may seem simple enough, she reminds us that it also matters where one saves their hard-earned cash. She particularly notes how keeping savings in stacks of cash in a drawer won’t be that beneficial as the amount can’t grow this way.
Kwok recommends either a money-market account or high-yield savings account for those who want to keep their money accessible while it collects interest. Going for online savings accounts is a great choice as they tend to offer clients better rates compared to big retail banks. But at the end of the day, she emphasizes that earning some interest, no matter how small, is still better than none at all.
‘Fireballing’ Debt
Pexels | Credit card debt may be the best place to start as they tend to have the steepest interest rates
It’s no secret that having debts will hold one back financially. Thus, it’s important that people learn how to tackle their dues while also meeting their savings goals. To do so, SoFi certified financial planner Lauren Anastasio suggests doing the ‘debt fireball method’. Simply put, the method entails people paying off debts with the highest interest rates first.
Living Below Your Means
Pexels | Brewer says that people’s spending can be justified as long as their lifestyle doesn’t overtake their income
It can be tempting to try and keep up with one’s peers by spending. However, experts note that doing so can hinder one from getting ahead on their finances. Certified financial planner Katie Brewer actually warns against what she calls the ‘lifestyle creep’ by keeping one’s expenses fixed and stable based on what their income is. This is the advice that the ‘Your Richest Life’ founder often gives her clients, who are in their 30s.
