Reasons To Use A Financial Adviser

 

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Having financial security is a great feeling. Most people, even those on modest incomes can benefit from talking to a financial adviser. There are so many misconceptions around what a financial adviser does and who should use one. 

These are the reasons you should consider talking to a professional about your finances. 

You’re just starting out

At the beginning of your career, when you first start earning money. You might feel you are a million miles away from needing financial advice. But this is the perfect time to start. A financial adviser can help you plan for the future. If you eventually want to invest in property, retire at 50, or start a family, they can help you choose the best financial products and pensions, provide mortgage information or get out of debt to put you on the right road to achieving your dreams. 

Your money isn’t working for you 

Not everyone is in the position to be able to save money, but if you are, then you want to ensure that you are getting the absolute best return from it. If your savings are sitting in a low-interest savings account, then a financial adviser can help you by suggesting other saving accounts of investing options. They will work with you to assess your appetite for risk and financial plans. 

You need to spread your financial risk

As the saying goes ‘never put all your eggs in one basket’. As the last five years have proved, you can’t predict what will happen with the economy. That’s why you need to spread the risk of your investments. A good adviser will give you a range of options that maximize the potential for returns and minimizes the risk of loss. 

You want to plan for your retirement

Retirement can last for 30 years or more, so you want to be sure that you are able to live comfortably when you retire. Talking to a financial adviser at various points throughout your life can help you to build up your retirement savings and find ways to access your pension in the most tax-efficient way when you need to. 

You want to leave your money to your family

No one likes to think about what happens when they die, but you do have to plan for it. Depending on your family situation, you may wish to leave money and property to your partner and children, or gift it to other family members and friends. Talking about your wishes with an adviser can highlight any tax and legal implications that might arise when you die. They will be able to assist you in finding the most tax-efficient way to leave your money to your loved ones. 

Final thoughts

It’s a common misconception that financial advisers are only for those with a lot of money. In fact, they can help most people make the most of whatever money they have. Be sure to find a reputable adviser who is accredited by the Financial Industry Regulatory Authority

 

Being More Financially Savvy in a Post-COVID World

 

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The coronavirus pandemic is one that has impacted many of us in a lot of different ways, and this is something you need to make sure you work on as much as possible. Try to think about what you can do to make the most of this, and there are a lot of ideas you can use that will help you to be more financially savvy in a post-COVID world where money is far tighter. 

A lot of people have uncertain futures and don’t know where their next paycheck might be coming from at the moment. And this is why it is so important for people to take steps now to look after their money and plan for the future. The more you can do to get a handle on this right now, the more it is going to benefit you. Here are some of the best tips you can use that are going to help you with this.

Get Out of Debt

Getting out of debt is one of the most important things you can do in your life, and it is essential that you work on this as much as possible. There are plenty of ideas you need to make the most of when it comes to making better financial decisions. Use debt planning tools in order to ensure that you work on making the most of your situation and trying to get out of debt in the best way you possibly can right now. 

Save Money

Saving money is also hugely important, and this is actually one of the most difficult and challenging parts of the process. You have to do as much as possible to factor this in, and to think about the different ideas that play a part in helping you get things right. Making better savings can have a hugely positive impact on your life, and there are a lot of elements that play a huge part in this process moving forward. 

Consider a New Career

Sometimes being more financially savvy means considering a fresh career path, and this is something you need to look into right now. There are a lot of options these days, especially with the evolution of the internet, and this is something you need to work on right now. You don’t have to leave your career, but you do need to prepare for the possibility that you might lose your job, and this is why it is important to have other potential employment opportunities that you can explore. 

Invest Wisely 

Investing wisely is also a really good way of being able to make the most of your money right now, and there are a lot of factors that play a part in this. Make sure you focus on doing as much as possible to invest in the right things so that your money is working for you in the best possible way.

As you can see, there are a lot of options to keep in mind when it comes to improving and enhancing your personal finances, and taking these steps right now is really important. Try to come up with ideas that will help with this, and it is something you need to make sure you work on right now.

Teaching Our Kids the Detriment of Debt

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It’s crucial to teach our children about the big things in life. While the school system teaches our children about science, literature, and history, it’s also important to ensure that our children have a thorough grounding in financial management. Not that we need to teach them how to be an accountant, but if we have struggled to get out of debt, we don’t want our children to go through the same emotional hardships when they are older. But this is easier said than done. Educating your children about financial planning isn’t about one approach. And with this in mind, how can we ensure we teach our children the most important points about debt and financial management?

Be Transparent With the Process

You may find it difficult to be transparent, especially when you may not understand every single aspect of financial planning, such as interest. While it’s important to have a thorough knowledge of things like interest we also need to remember how to explain it to our children. Transparency isn’t just great to highlight how it works, but it also can help if you are currently struggling with financial issues. If you are struggling to pay off a certain bill or you are attempting to chip away at debt, it’s important to show your children the process. If you are trying out a new way to balance the books or are using a process like the Debt to Success System, it’s crucial to have your children by your side as you learn to budget and balance your checkbook. It gives them a real insight into what is needed.

Teaching Your Children As Early as Possible

You may think that getting your children to understand debt when they are just entering school may be too early. However, you don’t need to go into the intricacies of debt; you can teach your children the importance of managing their money. Something as simple as giving them pocket money in exchange for helping out around the house that they can put towards a toy is the simplest method for them to understand that money requires work. And even if you feel that you haven’t started teaching them at a young age, it is never too late. Sending our children out into the real world is always anxiety-inducing for parents, and if we don’t have all the money in the world, we need to make sure that our children are armed with the best approaches to manage their finances.

Setting the Right Example

As parents, we need to operate with this in the forefront of our minds. If you really want to teach your children about the pitfalls of debt and lending you need to set the right example. By teaching your children good money management skills, you are helping them to understand what the pitfalls are, but it’s important to practice them yourself. If you forget to pay your bills and misuse credit, you are only teaching your children poor financial habits. When you are paying off debt, it’s a good idea to explain why you are doing what you’re doing.

Encouraging Your Children to Live Within Their Means

A crucial lesson in the modern world. As children will see countless advertisements for toys that encourage spending on expensive products and our children just think of the item they want regardless of cost, this is where we have to help them understand that they don’t need everything that they want. But the idea of pocket money for chores or tasks, and encouraging them to save their money for a big purchase. Because there are so many children that want expensive presents come Christmas time and we, as parents, feel that they deserve it, this can be making a rod for our own backs. When our children get what they want all the time they will only demand more. It’s never too late to encourage our children to live within their means.

Encourage Your Children to Borrow Money but Put Repayment Terms in Place

For older children, borrowing money can be the biggest lesson in financial management. Borrowing money can be a good thing, but it’s important to make sure they understand how and when the money needs to be repaid. For young teenagers, this will encourage responsibility but also make you comfortable in the fact that you will see your finances again. When our children want something that bad but it’s beyond their pocket money, it’s about having a two-pronged approach. You may not have the means necessary to lend them all the money, in which case, going 50/50 with them can help them work towards getting this purchase. They may even have to get a job. But also, if you are able to lend them all of the money, it’s important to act as a big financial institution. And it’s so easy for us as the parents to let things slide, but in the real world, this doesn’t pass muster. It may also help to incorporate the idea of interest because it doesn’t just help your children to see what they have in their wallet. Adding interest to funds can seem a bit cruel, but this approach will give your children that thorough grounding in the real world, especially if you didn’t have knowledge of interest when you were younger (or even if you still don’t)!

It’s vital that our children understand debt and good financial management in many forms. We don’t need to complicate things and we have to remember to be age-appropriate. But it’s vital for everybody to understand that debt can have unpleasant consequences. And what we can do to ensure that our children understand debt can comprise a wide variety of approaches. We know debt can be detrimental to us in so many ways. And this is why we don’t want our children to make the same mistakes and that we follow some of these crucial rules. Debt is something that can cloud our lives. This is why we all need to learn good money management and also ensure that our children have it too.