Who doesn’t wish that they had ten times more money than what they already have! It’s not easy to save dollars for regular, office-going folks, but if you thought that money-hoarding is a piece of cake for financial planners, you can never be more mistaken. You, being a financial planning wizard, may be able to draw up advice documents for your clients in the blink of an eye, but when it comes to managing your own finances, you’re almost always left staring at your backlog for hours on end!
So how could a financial planner go about managing his/her money? Here are 3 simple yet effective tips that will get you started on the path.
- The Nuances of Budgeting: It’s easy for you to create your own budget. You know everything there is to know about your expenditure, you know the mathematics of budgeting, and you do the same job for your clients day in and day out. The only issue here is following that budget plan. Your daily schedule is bound to be erratic, given that you live to serve your clients. However, try to find a semblance of balance amidst this chaos. Timely routine may not be for you, but keep a taut financial routine as best you can.
- Retirement Planning comes First: Have you been spending almost as much as you’ve been earning? You do plan to live to a ripe retirement age, yeah? If you haven’t already amassed a small fortune for your 70s, then it’s high time that you started off on that path. Ideally, you should have applied for an age pension soon after your financial planning business had kicked off. Don’t worry, however! It isn’t too late yet.
- Your Net Worth is the Key to Move Ahead: You may be constantly badgering your clients to keep their net worth in check, but do you bother about yours? When was the last time you calculated your assets to debts ratio? Your net worth will give you a clear idea about your current financial status, and will eventually help you in creating a sound financial plan.
Don’t just try to serve your clients all day and night. Leave some time out for managing your own finances. What use are your skills if you don’t utilize them for your own welfare? And who would ever dream of hiring a financial planner who is broke!