Finance & Enjoyment Blog

Wealth Management Tips

Many people dream about having a lavish lifestyle, but most people don’t take the measures to make it happen. What these people don’t seem to understand is that even with hard work this type of lifestyle will be out of reach unless they pay attention to personal wealth management. As a Denver CPA it is our job to guide you with information and insight to plan for a secure future. Take a look at some areas that we believe are worth your attention.

Income and Expenses

Take a good look at your annual income and do a little research to compare your salary to people with similar jobs. Sometimes you might be getting underpaid, but even if everything is in line with the industry average, it’s always good to assess how much income is flowing into your household each year. This is especially important for those who do contract or seasonal work, and be sure to include bonuses, rental and investment income. Once you’ve established that your income is fair and where it comes from, look over your monthly expenses. Try and find places where you could save some money. For example, if you stop at Starbucks every morning, try to cut back and go every other morning. While cutting back on small expenses may not seem helpful, over the course of the year these small cutbacks could turn into hundreds or even thousands of dollars saved.

Saving for a Rainy Day

Once you’ve established your monthly and yearly budget, it is time to tackle your savings. While having property and other material items are great, it is also good to have savings in case of an emergency. An easy way to make sure that you have a solid foundation of savings is to ensure you have 3-9 months of your living expenses saved; while you should put about 10% of each paycheck into retirement savings.

Credit is still Money

Credit cards and lines of credit are a blessing and a curse. While having credit can be a great asset to help you plan your finances, it can also cause a great deal of trouble. Having good credit will allow you to buy a car, a house and much more. A bad line of credit on the other hand can cause serious misfortune. Just be sure that anything you pay for with credit, you can also pay off when the time comes.

Have Realistic Financial Goals

Wealth management is a step-by-step process, so to avoid getting overwhelmed, start small and think short-term. Eventually all those short-term savings will turn into a long-term goal for financial stability. One long-term goal you want to prioritize is your retirement fund. The earlier you start saving and planning, the sooner you will have a solid foundation for retirement.

How to Use this Information

It’s always helpful to seek the advice of legal and financial experts to guide you through a detailed wealth management plan. Lean on their expertise and counsel to guide you through the process to ensure you develop a plan that works for your lifestyles. At KKB, P.C., we are here to help. Please call us at 303-815-1100 or contact us online today!

What measures have you taken to ensure a financially secure future?

Posted in Your Financial House »

0 Responses to "Wealth Management Tips"

Leave a Reply

Fields marked with  * are required.

Name *
Email Address *
(will not be published)