Everyday Wealth Management Strategies

By Clint Maher

Wealth management is a lifelong pursuit, not something you arrive at but something that you do tirelessly and relentlessly. From the smallest things such as limiting your use of credit cards to the biggest things such as maxing out your retirement plan, wealth management covers it all. Read through and we'll look at ways you can head down the road to optimum wealth management.

  • Get Out of Debt
    If you are in debt, tackling this issue first before investing is paramount. Debt does nothing but drain your wallet. It chains you to jobs you hate, to a home you do not love, to circumstances that are beyond your control. Better to get rid of debt now, than to be chained by it later. Before you buy, ask yourself, “Do I really need that??
    Credit cards are great for emergencies. Still, the benefit can be negated if it is not used wisely by buying something you don’t need. This question comes in very handy for every purchase. If you set a budget and stick to it, you will avoid impulse buys. And if you can manage your everyday budget and use the money you have without using a charge card, you won’t be tempted to use your charge card in the first place. Also, make some rules about items that you will never, ever use a charge card to buy. If you are seriously overextended, call your credit card company and request assistance. Sometimes they have some ideas to help out people who really want to pay their bills.

  • Make A Plan
    Nobody wakes up and says, "I think I'll pursue a life of poverty today." Okay, maybe some cloistered nuns who have taken a vow of poverty do, but you aren't one of them. Start a saving plan and start small. Be realistic about the amount of money you can save. When you have decided on an amount, put that money in the savings account, and leave it alone. If you can only save a small amount, that’s great. Work your way up as your life changes. The very easiest way to do this type of saving is to have the money withdrawn from your account by direct deposit or some similar method. That way you’ll automatically save without making an extra effort to do so. College, marriage, children, work, and more can impact your wealth management. Also, you’ll need a bit of a nest egg for those unexpected expenses, like the exploding water heater or car repair. You might even want a specific savings fund for unexpected expenses. Also, If you have a specific savings account for emergencies, you will be less tempted to go into debt. Prepare for contingencies and make adjustments along the way.

  • Set Aside Retirement Money
    I know what you are thinking: I won't retire for 40 more years; I am 24 and just want to make a living. Well, chances are you are in a new job and career that doesn't pay you all that much. Still, if you set aside as little as ten dollars per week from your paycheck, then you can get your employer's 401(k) match and have fifteen or twenty dollars to invest. The miracle of compounding can turn that tidy little bit of money into hundreds of thousands of dollars even if you don't add more money to it. The big trick here is not to take money out of any of these retirement funds, no matter how much you are tempted. Also, take a look at your 401k with an adviser every once in a while. Your 401k might have some other investments that increase the amount of money you will earn. Get some good advice from an adviser to make sure your investment money is being used to its best advantage. Of course, you'll put more money into your retirement kitty later on, won't you? Saving money and participating in retirement opportunities are great wealth management strategies!

  • Buy A Home
    Real estate still offers a great deal for those looking to invest their money. Search around and purchase the home that is within your means. If you buy a house that you can actually afford, you will be less likely to have problems paying for it later. Recently some loans have encouraged people to buy beyond their means. Read over loan offers carefully and buy carefully. Also, location of the property matters. Once upon a time a person could by a house in any neighborhood and make money. This is not always true these days. Take into consideration other significant life events that may occur in the future, including marriage, children, pets, and more. Make a wise investment by buying a house that will increase in value, and that you can afford as well. This is known as wealth management, housing style!

Wealth management is a mindset as well as an act. If you plan to succeed, you will succeed. Make no plans, then that is the same as planning to fail…who does that? Not you, because wealth management is your style!