Learn how you can manage your money better and build wealth more efficiently during any economic environment…
In the current economy many are looking at ways that they can manage their money and build wealth in a more enduring way.
Although managing your own money may appear difficult at first glance in this COVID-19 environment–or any environment, it is important that you realize that you can manage many areas of your finances effectively if you arm yourself with the right knowledge.
Effective money management is not as difficult as you think if you can process what you are learning and you approach your finances in an intelligent, consistent and proactive manner.
You must know at this time that you are determined to reach your goals at a level that is the absolute best that is within you!
In this discussion TheWealthIncreaser.com will discuss ways that you can possibly manage your money better now and in your future.
It is important that you create a budget or personal cash flow statement so that you can know where you are at (and where you can possibly go) from a financial standpoint on a monthly and annual basis and you must take steps to ensure that your emergency fund is properly funded at the earliest time possible.
By properly establishing an emergency fund at the earliest time possible you put yourself and your family in position to minimize your future risks.
It is very important that you establish your credit appropriately at the earliest point possible if you desire to build wealth and you are like most who have a need to borrow at some point during their lifetime.
There are a number of proven, highly effective steps that you can learn in a relatively short time frame that will show you how to more effectively manage your credit and finances—and it is your responsibility to learn how to apply effective credit management in your daily life.
You must make it a point to review your insurance needs on an annual basis to see where you can manage your insurance better as far as coverage, cost and necessity.
Insurance provides protection from loss and it is important that you analyze areas of your life where insurance can be of benefit to you and/or your household.
You can make your investments grow in a more efficient way if you diversify, reallocate, analyze your risk tolerance level, use leverage appropriately and ease into investing.
You must review your investments on a consistent basis, preferably annually at a minimum and know when it is best to invest inside or outside of your retirement account(s) based on your goals.
Your ability to analyze your tax complexity and possibly do your income taxes yourself is now a real possibility if your tax position is not complex as tax software that allows you to prepare your state and federal taxes are relatively inexpensive and readily available.
You must gather your paperwork, learn what is new and input the tax information that you have.
Always keep in mind the fact that tax preparation can have nuances and areas of concern that may require a professional analysis. If you can’t file your income taxes in a timely manner (by the April 15th deadline in most years) you can file an extension using form 4868 to file a six month extension (if you owe you may have to pay penalties and interest) and address your taxes later in the year.
Also realize that your review of your taxes is far broader than just your income taxes. You must look at your local taxes, real estate taxes, regulatory taxes and other fees that you may pay that go by other names but are in effect taxation to you and/or your household.
Review your Education planning
In the area of education planning you can start before the birth of your child up until your child’s last semester of graduation and the sooner you get started–the better.
You can use investment returns to lessen or eliminate your need to borrow whether you desire to fund your child’s primary, secondary or college years.
You must put a plan in place to reach your “desired education number” (the dollar amount that you need to reach to avoid or reduce borrowing for your or your child’s educational costs) at a future date.
Review your Estate planning/wills
It is important that you have a will at a minimum and seriously consider estate planning if your net worth is increasing and you want to avoid probate.
You can make your estate private after you transition so others are not aware of your estate after your transition if you desire to do so by planning for that eventuality now.
Your need to plan for what your heirs inherit after you transition is real as it can leave your heirs squabbling over your assets at a time of grief or lead to them getting along in a more civilized manner during a very difficult time.
If you desire a more cooperative spirit during the grieving period among your heirs once you transition, be sure to plan now to avoid chaotic occurrences involving your loved ones in the future.
Review your Retirement planning
Your need to plan early and stay committed should be given high consideration by you as living your retirement years at a certain level of comfort must be your goal.
Long Term Care costs are increasing annually and you must plan for those and other costs that will likely need to be addressed as you age.
By starting early you can reach your “retirement number” and live daily doing what you dreamed of doing during your retirement years.
Funding your grand-child’s education, your dream vacation destination(s), your charitable giving and other desires of your heart that you may have can be made real if you get out in front of your goals and plan appropriately at this time.
Conclusion
It is important that you use your time wisely while you are in the process of building wealth and achieving your desired goals throughout your lifetime.
By looking at your finances from time to time in a comprehensive manner you can put yourself in position to manage your money and build wealth in a more efficient manner.
Your goal is to take a systematic approach toward your money management and not leave your money management up to chance or wishful thinking.
By reviewing your finances you can know where you now are, make improvements and reach the goals that you desire in a more time certain manner—and in a manner that improves your money management skills and improves your net worth.
You can bring in professionals or those who have more expertise in certain areas when and where necessary. You will be in a much better position when you deal with financial professionals and others than you were prior to reviewing your finances in a comprehensive manner.
By reviewing your finances in a comprehensive manner at this time, you put your present and your future exactly where it should be—in your hands.
Now is not the time to rest or give less as you pursue success!
All the best to avoiding a money management mess and achieving lifelong wealth building success…
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