**Guest Blog** 5 Don’t Miss Tips for Financial Success
This week’s blog post is brought to you by Buck Vicars, a financial adviser at Dunlap Wealth Strategies. In my previous blog posts, I talk a lot about balancing your life and becoming your authentic self. One key piece for young professionals is building the right strategy to support your ideal vision – for a lot of us, that means having the right strategy for financial success. Especially for those of us considering a career transition, a financial adviser can help you make the best financial transition for you.
Here are 5 of Buck’s best tips for growing your income and making the most of it, starting right now.
By themselves, jigsaw puzzle pieces don’t mean much – they’re nothing but a blur of color and bewildering shapes. But by organizing them properly over time, and keeping your eye on the big picture, you can fit them together to create something amazing.
Financial planning works the same way. When young professionals begin their career in the working world, their lives consist of a smattering of financial pieces: a bit of savings here, a small investment account their parents & grandparents started for them there . . . When it comes to making those pieces work together, it’s easy to get overwhelmed, especially if you aren’t sure how to organize them, or, what the end-result even looks like . . .
Even more troubling is the fact that you don’t want to get near the end of building the puzzle only to discover you’re missing a crucial piece.
The “big picture” young professionals aim for is financial security in the long-run. Well, Buck, what are the basic steps I can take to ensure that I am well on my way to financial security?
1. Start Early: Even the best-laid financial plans can become derailed by unanticipated costs. Of course when we’re young we like to think that we’re invincible and nothing bad can happen to us . . . Unfortunately, that’s never the case, so, it always pays to be prepared for the “what-ifs” in life.
Insider Tip:For most young adults, that means having at least six months’ worth of liquid savings for unexpected emergencies.
Your window of savings opportunity closes a little more with every day that you put off actively shaping your own financial well-being. Whatever your age, starting today is better than waiting! Don’t believe me?
2. Save for a Rainy Day: There are two ways to buy what you want in life: cash or charge. The very definition of financial security is being able to buy what you want on your own terms. Freedom! With a little planning and saving in advance, you can avoid shackling yourself in debt (or too much debt) and keep from paying way too much in interest charges.
Create a “rainy day” fund and apply this bucket of money towards a fun goal . . . such as a new car, a dream vacation, or stylish furniture for that small, one-bedroom apartment. But don’t overlook the practical. For example . . . don’t forget to pay yourself. You pay everyone else; it’s time to start “socking-away” money for you.
Insider Tip: It doesn’t take much: save 10% of what you make and success is just a matter of time as you steadily build wealth. If you don’t stick to this notion, financial success can elude you, no matter how much money you make. That means for every dollar you earn, save about 10 cents before doing anything else. It’s simple, easy, and effective.
3. Long-Term Perspective:Your immediate and short-term needs are easy to focus on. However, it’s not so easy for young professionals to take this third step seriously. After all, retirement is a long way off. Of adults age 30 and under, only 19% contribute to a Traditional or Roth IRA, according to a study by CCH, a provider of tax analysis. Only 28% participate in a 401(k) plan, and of those, only 4% contribute the maximum amount allowed.
Where should I contribute? It always makes sense to consult with a financial professional, but, as a general rule of thumb . . . investing in mutual funds within certain “tax-advantaged” accounts – including a Roth IRA and 401(k) – are usually your best bet.
4. Don’t Get Emotional: Sure, you will run into “bumps” along the way which can invoke emotion, but, the key thing to remember is . . . don’t let these emotions get the best of you! Making a financial decision based on emotional reasons can lead to costly mistakes. It’s easy to get greedy, become scared, or act out of greed and / or fear. Whenever you make an investment decision, be sure to ask yourself. . . “Am I acting on greed, fear, or facts?”
5. Needs vs. Wants: Let’s face it . . . as young professionals, we aren’t exactly “reeling in the dough”, YET (hopefully someday), but, for the time being, we sniff-out bargains, value bars that offer Happy Hour specials, and check our Groupon and Living Social e-mail offers on a daily basis. My point is, we sacrifice a little in the beginning knowing that this mindset pays valuable dividends in the long-run. That being said . . . we still can’t avoid spending money on our basic needs, including transportation, housing, and food. How we choose to meet those needs has a dramatic impact on the amount we can save and invest. If you’re not saving enough, switch to the cheaper option in a couple of areas and invest the money you save.
Insider Tip: It’s not that you shouldn’t ever choose the expensive option; it’s that you should limit your splurges to what really matters to you.
Transportation
Housing
Food
“Rainy Day” Savings
Average luxury car: $700 / mo.
Luxury apartment in Southeast: $1,800 / mo.
Dining-out: $20 / person
Treating your friends to a night on the town
Average sensible car: $300 / mo.
Average nice apartment: $850 / mo.
Dining-in: $10 / person
Buying CE Course Credits for Work
Show me the money: The beauty of these doctrines is that they hold true no matter how much money you make. Whether you bring home $20,000 or $200,000 a year, the concept remains the same for all young professionals. If you master these principles, you’ll free up money in your budget you never knew existed and use these excess funds to start piecing together your financial plan.
Always remember this: Financial success breeds financial independence and the freedom to live your life the way you want!
What’s next? Knowing what you should do is only the first step. Actually doing it is what will get you results. For help in determining what steps to take for your financial success, contact your financial professional. It’s as easy as a simple phone call – there’s no need to figure out your way to financial independence on your own. Get in touch with an expert and have a wide array of resources available for you!
About this Guest Blogger: Buck Vicars is a Financial Advisor practicing at Dunlap Wealth Strategies Group in Atlanta, GA, a member of Commonwealth Financial Network. Buck helps individuals, families, and small business owners define and strive to meet their financial goals by delivering a vast array of resources to clients in the way that is most appropriate for how they invest and what they hope to achieve during retirement. Buck can be reached by e-mail at Buck@RayDunlap.com or by phone at (770) 632-2674.
Securities offered through Commonwealth Financial Network, Member FINRA / SIPC.
**Guest Blog** 5 Don’t Miss Tips for Financial Success
This week’s blog post is brought to you by Buck Vicars, a financial adviser at Dunlap Wealth Strategies. In my previous blog posts, I talk a lot about balancing your life and becoming your authentic self. One key piece for young professionals is building the right strategy to support your ideal vision – for a lot of us, that means having the right strategy for financial success. Especially for those of us considering a career transition, a financial adviser can help you make the best financial transition for you.
Here are 5 of Buck’s best tips for growing your income and making the most of it, starting right now.
By themselves, jigsaw puzzle pieces don’t mean much – they’re nothing but a blur of color and bewildering shapes. But by organizing them properly over time, and keeping your eye on the big picture, you can fit them together to create something amazing.
Financial planning works the same way. When young professionals begin their career in the working world, their lives consist of a smattering of financial pieces: a bit of savings here, a small investment account their parents & grandparents started for them there . . . When it comes to making those pieces work together, it’s easy to get overwhelmed, especially if you aren’t sure how to organize them, or, what the end-result even looks like . . .
Even more troubling is the fact that you don’t want to get near the end of building the puzzle only to discover you’re missing a crucial piece.
The “big picture” young professionals aim for is financial security in the long-run. Well, Buck, what are the basic steps I can take to ensure that I am well on my way to financial security?
1. Start Early: Even the best-laid financial plans can become derailed by unanticipated costs. Of course when we’re young we like to think that we’re invincible and nothing bad can happen to us . . . Unfortunately, that’s never the case, so, it always pays to be prepared for the “what-ifs” in life.
Insider Tip: For most young adults, that means having at least six months’ worth of liquid savings for unexpected emergencies.
Your window of savings opportunity closes a little more with every day that you put off actively shaping your own financial well-being. Whatever your age, starting today is better than waiting! Don’t believe me?
2. Save for a Rainy Day: There are two ways to buy what you want in life: cash or charge. The very definition of financial security is being able to buy what you want on your own terms. Freedom! With a little planning and saving in advance, you can avoid shackling yourself in debt (or too much debt) and keep from paying way too much in interest charges.
Create a “rainy day” fund and apply this bucket of money towards a fun goal . . . such as a new car, a dream vacation, or stylish furniture for that small, one-bedroom apartment. But don’t overlook the practical. For example . . . don’t forget to pay yourself. You pay everyone else; it’s time to start “socking-away” money for you.
Insider Tip: It doesn’t take much: save 10% of what you make and success is just a matter of time as you steadily build wealth. If you don’t stick to this notion, financial success can elude you, no matter how much money you make. That means for every dollar you earn, save about 10 cents before doing anything else. It’s simple, easy, and effective.
3. Long-Term Perspective:Your immediate and short-term needs are easy to focus on. However, it’s not so easy for young professionals to take this third step seriously. After all, retirement is a long way off. Of adults age 30 and under, only 19% contribute to a Traditional or Roth IRA, according to a study by CCH, a provider of tax analysis. Only 28% participate in a 401(k) plan, and of those, only 4% contribute the maximum amount allowed.
Where should I contribute? It always makes sense to consult with a financial professional, but, as a general rule of thumb . . . investing in mutual funds within certain “tax-advantaged” accounts – including a Roth IRA and 401(k) – are usually your best bet.
4. Don’t Get Emotional: Sure, you will run into “bumps” along the way which can invoke emotion, but, the key thing to remember is . . . don’t let these emotions get the best of you! Making a financial decision based on emotional reasons can lead to costly mistakes. It’s easy to get greedy, become scared, or act out of greed and / or fear. Whenever you make an investment decision, be sure to ask yourself. . . “Am I acting on greed, fear, or facts?”
5. Needs vs. Wants: Let’s face it . . . as young professionals, we aren’t exactly “reeling in the dough”, YET (hopefully someday), but, for the time being, we sniff-out bargains, value bars that offer Happy Hour specials, and check our Groupon and Living Social e-mail offers on a daily basis. My point is, we sacrifice a little in the beginning knowing that this mindset pays valuable dividends in the long-run. That being said . . . we still can’t avoid spending money on our basic needs, including transportation, housing, and food. How we choose to meet those needs has a dramatic impact on the amount we can save and invest. If you’re not saving enough, switch to the cheaper option in a couple of areas and invest the money you save.
Insider Tip: It’s not that you shouldn’t ever choose the expensive option; it’s that you should limit your splurges to what really matters to you.
Transportation
Housing
Food
“Rainy Day” Savings
Average luxury car: $700 / mo.
Luxury apartment in Southeast: $1,800 / mo.
Dining-out: $20 / person
Treating your friends to a night on the town
Average sensible car: $300 / mo.
Average nice apartment: $850 / mo.
Dining-in: $10 / person
Buying CE Course Credits for Work
Show me the money: The beauty of these doctrines is that they hold true no matter how much money you make. Whether you bring home $20,000 or $200,000 a year, the concept remains the same for all young professionals. If you master these principles, you’ll free up money in your budget you never knew existed and use these excess funds to start piecing together your financial plan.
Always remember this: Financial success breeds financial independence and the freedom to live your life the way you want!
What’s next? Knowing what you should do is only the first step. Actually doing it is what will get you results. For help in determining what steps to take for your financial success, contact your financial professional. It’s as easy as a simple phone call – there’s no need to figure out your way to financial independence on your own. Get in touch with an expert and have a wide array of resources available for you!
About this Guest Blogger: Buck Vicars is a Financial Advisor practicing at Dunlap Wealth Strategies Group in Atlanta, GA, a member of Commonwealth Financial Network. Buck helps individuals, families, and small business owners define and strive to meet their financial goals by delivering a vast array of resources to clients in the way that is most appropriate for how they invest and what they hope to achieve during retirement. Buck can be reached by e-mail at Buck@RayDunlap.com or by phone at (770) 632-2674.
Securities offered through Commonwealth Financial Network, Member FINRA / SIPC.
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