Money Management Advice
Are there any secrets to consistent money management success? Are there any true get-rich-quick strategies that work for the average investor more than occasionally? While many continue to look for successful strategies that give them an edge, here’s a list of common-sense suggestions that are sure to improve any financial plan.
Although some argue that there’s a place for using debt, avoid unnecessary debt, especially debt that has high interest such as credit cards. Pay your high-interest rate debts off as quickly as you can, even if it means taking out an extra mortgage (at a lower interest rate) to do so.
If you are saving, then make sure you know what it is you are saving for. A house is always the best thing to save for. A car will always depreciate very fast, and vacations are a very quick way to burn savings.
Commit to setting aside a portion of your money into a savings and investment plan, such as 10%, and make sure you stick to it. If you’re budgeting then make sure you stick to that too. It is very easy to do, after a while it just becomes habit.
Add exposure to the equity markets for long-term growth. If you are looking to build a stock portfolio, learn something about investing in stocks first. Choose some high-quality companies that you really think are a good investment. Do some research into the companies and find out what products they offer.
Choosing a company just because they have a product that you love can be an investment strategy. Alternatively choosing companies that you think have great potential and good future are other reasons. It may be well worth your while to consult a professional to help you get started.
Have you considered adding real estate to your investment portfolio? You may need to take out a mortgage against the property to buy the property you have in mind. To make decent returns, you will need to acquire debt in the form of a mortgage. This creates leverage in your investment. In most cases, banks are eager to make loans to buy real estate because they see property values as stable.
It has been said many times that there’s no perfect investment - there are pros and cons with every investment. There are so many choices that the task of choosing what’s right for you and your unique situation is difficult. What ever investments you use to build for your future, the more knowledge you have, the better prepared you’ll be in times when your investment plan is going through difficult times.
This article was written and submitted by Your Financial Advisor, an online resource covering a helpful list of financial topics. For more information on personal finance education please visit Your Financial Advisor
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