4 strategies I use to manage my money, no financial planner required

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  • Financial planners are great, but not everyone can afford to hire one.
  • I certainly fall into this camp – I earn a decent living, but I can’t afford to keep a CFP on warrant. Instead, I learned some strategies to grow my money on my own.
  • I opened a SEP IRA because I am self-employed and invest in the stock market with Robinhood. I also constantly read about financial planning and actively assess my financial health and goals.
  • Learn more about personal finance coverage.

While financial planners are necessary consultants for many people, especially those with significant wealth and diversified accounts, having your own financial planner is a luxury you can probably do without if you’re new to building your business. finances or if you don’t have a ton of assets yet. .

It’s no secret that financial planners are professionals who make a living from smart money management, and it’s great to have one in your corner. They are particularly useful if you want to start investing wisely and need additional information. But the cost of keeping a financial planner on retainer isn’t necessarily worth it to you.

You may think you’ll never be able to manage your finances on your own, but with a few tips and tricks, you could be on top of your financial health in no time.

As a relatively young person without a ton of savings, hiring a financial planner still doesn’t make much sense to me. Instead, I do a few simple things with the money I have, and by exploring multiple investment and savings opportunities, I’ve managed to build a nice portfolio that serves as my financial foundation for life. ‘coming.

Here are some of my tips to help you start taking charge of your financial well-being.

Contribute to a SEP IRA

Since I’m a small business owner, I don’t have an automatic quarterly tax deduction or access to a company-sponsored 401(k). Instead, I set up an Individual Retirement Plan for the Self-Employed (SEP IRA) that allows me to save for retirement.

Money from my SEP IRA is invested in a Vanguard Total Stock Market


Index fund

(VTSMIF), which hopefully means my money will make more money.

Instead of choosing to buy stocks of specific publicly traded companies, VTSMIF gives me shared access to the entire US stock market, which includes stocks of large and small companies. It’s an inexpensive way to get into the stock market game.

As the market as a whole fluctuates, my retirement fund follows. It’s a simple way to start investing and saving for retirement without having to invest a ton of time in research.

Invest with Robinhood

While saving for retirement is important, it’s fun to have a play wallet accessible if I need the money. For me, my gaming wallet is my investment account at Robinhood.

I got into Robinhood because I wanted to learn the ins and outs of the stock market and play around with day trading a bit. Now I have a Robinhood brokerage account that I can use to buy stocks and funds, options, gold, and even cryptocurrency.

It taught me stability and


volatility

of the market, and I love that Robinhood aims to democratize the markets by ending trading commissions that people on Wall Street never had to pay in the first place.

Lily

It’s the last fiscal quarter of 2019, and you can bet the financial literature exists and is freely available on the internet. Even if the material is available, many people aren’t as financially savvy as they could be, either because they don’t know where to look or because financial health isn’t their biggest concern. priority.

As understandable as it may seem, it’s up to you to take control of your financial health in any way possible. You can start with a simple internet search; whenever I have a specific question or don’t understand economics writing jargon, I make sure to research those acronyms and terms.

To educate myself, I read books and blogs about personal finance, investing, and saving for the future. By reading this article, you are already on the right track!

Some of my favorite books for financial advice and philosophy include “Rich Dad, Poor Dad”, “The Millionaire Next Door”, “The Intelligent Investor”, and “A Random Walk Down Wall Street”.

Reflect

Chances are your financial situation will change on a regular basis, or it will change in the future. You can start your family, go back to school, change jobs, benefit from an inheritance or experience a number of relevant situations. In these cases, it is important to reassess your financial health and make the necessary changes.

For my part, I regularly consider my overall financial situation to ensure that my choices still make sense.

As I monitor my investment profiles and watch my savings grow, eventually it may be a good idea to hire a financial planner so I can make sure everything is handled as smartly as possible.

I’m no expert, and there will likely be a certain wealth threshold where it makes sense to delegate to a professional. For now, however, I am staying financially healthy by monitoring my wealth and diversifying my accounts to maximize any potential growth.

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