Every income earner is confronted by tough choices when it comes to managing personal financial matters. Sometimes we get it right, sometimes we are off-mark. Unlike some aspects of our lives w off here we can get off easily, some money mistakes have repercussions that impact our financial future.
Therefore it is important to reflect on the source of your financial advisory services, where applicable and how this has shaped your personal financial decisions in the past. For example, who is your go-to person when it comes to making important financial decisions? Do you consult or are you confident enough to make such important decisions? Typically, people seek financial advice from people they are comfortable with, including family members or friends. While it is advisable to seek the advice of a certified personal financial advisor, you may be constrained by resources or you may not readily access such services.
In such circumstances, your options could be doing your homework first and then seeking a second opinion from those who possess knowledge about managing money.
However, you should be careful when selecting a financial advisor. Email feedback from advisor. Email feedback from some readers of this column indicates that some unscrupulous people have taken advantage of those seeking personal finance advice.
Regarding money matters, age is a key factor that influences our decisions. For example, some of the financial decisions you make during your twenties are not similar to those you will make in your fifties.
At this stage in your life, you have fewer responsibilities and have room to speculate regarding investment options, at a youthful age, you have greater scope to take the risks and can therefore, recover from money mistakes.
At the same time, avoid the notion of feeling too young to worry about prudent money management. Remember, the earlier you make the right decisions, the more you are in a position to take advantage of compounding interest. If you make saving a part of your long term financial planning, you will have a buffer that gives you a couple of choices down the road. You can use it as a source of capital for investment. A down –payment for some big ticket expense like a mortgage or purchase of land.
Further still, seeking advice will arm you with information to the effect that your earning comes in cycles. For example, if you are in the category of those about to retire, you should have discovered that what you earned in your twenties is lower than what you earned in your forties. This was occasioned by the increment in income n the account of the experience you gathered
Any planner will tell you that it is advantageous to save and invest before you start a family because this stage in life comes with bigger demands in your income.