Top 5 Tips for Making Sound Financial Decisions

May 25, 2021

Everyone needs to make smart financial decisions that steer them toward financial independence. When people thrive financially, they may feel less financial stress, leading them to accomplish short and long-term financial goals. Here are five tips to help you make better financial decisions for yourself:

1. Involve Yourself in Your Finances

No matter your age, gender, or marital status, it’s vital that you’re actively involved in your finances. If you have a financial-related question or need professional financial advice, seek it. Remember that you are ultimately the one in charge of how you spend, save, and manage your money.

2. Develop a Financial Plan

A solid financial plan is essential to create a roadmap for you to follow. A financial plan addresses your income, expenses, investments, and personal taxes. All of these items work together so that once you have your plan in place, the financial strategies proposed by your financial professional will help you to meet your goals. Unsure of how to design a financial plan? Contact your financial professional to get your financial plan underway. 

3. Don’t Forget to Invest

Participate in the open markets by investing and saving for retirement. Remember that failing to invest as soon as possible can make it harder for you to retire, pay for college, and meet your financial goals on time. While investing may sound overwhelming and risky, it is important to invest for your financial future. If you need assistance or have questions, ask a financial professional to help you. 

4. Prioritize Your Retirement

The sooner you prioritize saving for your retirement, the greater the potential to increase your retirement savings before you’re ready to leave the workforce. If you work for an employer that offers a retirement savings plan, be sure to contribute up to the company match, or more, if possible. If you don’t have an employer-sponsored retirement savings plan or work for yourself, meeting with a financial professional can help determine which type of plan is best for your situation. 

5. Work with a Financial Professional

Rely on a financial professional as a trusted partner to help you meet your goals. They will take the time to understand your needs, evaluate your situation and make recommendations. A financial professional may also provide you with guidance for debt reduction, ways to save more money, and appropriate investments for you.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

This article was prepared by Fresh Finance.