Do you wish you felt more financially secure? Maybe I should ask the question.. Who doesn’t? I’d like to feel as if my finances were locked in one of those giant vaults with a moat of hungry crocodiles swimming around it. Maybe what we really mean is financial freedom. Know that it is definitely not easy to get to that point but here are 7 ways to financial security.
1. Be responsible. Surprisingly enough, this one tends to go in one ear and out the other. So many Americans are not financially responsible. Yeah I said it. We go out to dinner. We blow a month’s pay on a Louie Vuitton bag. We spend well beyond our means. We make $4000 gross per month and spend $5000 per month. Now I’m not one of those guys that says you have to walk around in rags, adopt the ramen noodle diet and live in a shoebox. I’m saying that you should budget your money and ensure that you can afford that Saturday night dinner at Roberto’s on Arthur Avenue.
2. Save. Here’s another obvious one. The idea of saving money is painful for so many. Do I want to save that $150 bucks or do I want to go out and buy an awesome pair of handmade, designer shoes from OneGround? Decisions, Decisions. For OneGround, I may have to make an exception… so bad example. Most financial experts will tell you to have AT LEAST 3 months expenses saved. That means food, shelter, clothes, car payment, medical bills, etc. So the amount of money you spend total in three months should be saved. That’s at a minimum. Most will tell you six months or even a year is the smarter amount. So if you spend $5,000 total every month, you should have saved $15,000 (3 months) or $30,000 (6 months) or even $60,000 (12 months).
3. Start a business. This one is not so obvious. It is often said that no one ever got rich working for someone else. But that’s not even the point I am trying to make here. There are tax benefits to starting a business. Deductions BABY! Maybe you can start a side business fixing cars like Petrescu Motorwerke did when the owner first started out. By the way, great mechanic! Check him out. Ask for Christian or Jake. Maybe you are a great cook and can do some catering or be a personal chef on Friday and Saturday night. Pick something you are passionate about and make it happen. And don’t over plan. Just go for it.
4. Plan for taxes. What is your biggest expense every year? Taxes. Right. Most people don’t even think of taxes as an expense because they say “oh well.. it comes out of my check.. that money isn’t even mine.. I don’t feel it.. BLAH BLAH BLAH..” If you hire a CPA for tax planning, you could devise a strategy with him or her that could lower your tax liabilities. We have saved your average, everyday people thousands of dollars.
5. Don’t just save. Oh nice. You saved that much money?! Wow. Yeah. Still not enough. Retirements are beginning to get longer and longer. Why? Because technology is improving and people are living longer. So nowadays it’s not enough to just stockpile cash in your Citibank account. Strategically investing has become almost necessity. Investing is a thing of beauty because your money can grow while you sleep. So you want me to save $15,000 and still have money to invest? Yes. Yes I do. You would be surprised how many people just sit on money and at their time of retirement expect it to be enough. Analysts are saying now that $1 million may not even be enough. That’s so scary that I just have to laugh. Oh and we can help with the whole investment thing. Contact us below.
6. Have multiple cash flows. This one is pretty awesome I must say. I personally take on consulting gigs outside of my primary job because I actually enjoy helping businesses take a good thing and make it better. I am adept in marketing, efficiency and technology and what I have to offer is often an approach that’s both unique and helpful to even strong businesses. But this goes back to the starting a business point. Maybe you have some spare time and are great with children. Babysit and have a stream of income outside of your day job. Apply for a bartending gig on Saturday nights at your favorite hangout. But increasing your cash flows can dramatically improve your financial situation. I would go as far to say this tip may be the most important.
7. Pay down debt. Keep chipping away at it. Especially those high interest credit cards. Those are just sucking money out of your wallet or bank account like the most powerful Dyson Vacuum on the market. 18%. 23%. 28%. Like whoa baby!! These interest percentages can be financially crippling. The best thing to do is to not get into debt in the first place. But if unavoidable, pay it down as fast as possible.
So here are our 7 ways to financial security. Like a long, bumpy, winding, tank trap filled road. I know it’s hard. But you can thank us when you get there. We can assist you with a few of these tips. Things like starting a business and tax planning and advice on investing are things we excel at. If you have any questions at all, contact us below. Until next time folks.