5 Steps to Earn More Money.. Meet Them | management
CNBC published a report in which it presented 5 tips given to the site by certified financial experts who confirmed that they can help those who want to earn more to successfully achieve this goal. The writer began his report by saying that adopting good financial habits can easily pay off. The report addresses five tips as follows:
1- Start by analyzing the budget for the previous year
In this sense, the report confirms that every good financial plan starts with a budget, and that analyzing your expenses for the past year can help you create smart goals for the new year.
The report cited what Kasia Marcic, president of Florida-based Anchor Wealth Group, said: “You can look at the past year to see what you did and what you were happy with, looking back helps you know what you want.” Spend Part of that analysis should include your spending mistakes, Anchor points out.
But Dennis Morton, co-founder of Pennsylvania-based Morton Brown Family Wealth, says it’s just as important to “feel proud” of what you’ve done well. Look back at the past 12 months and say, ‘What did you learn?’ Have a few successes here to realize you can make a positive change, then turn around and say, ‘Now, what are the small steps that can move toward big goals?'” adds Morton.
“When you’re creating your new budget for the year, be sure to review it once a month, especially if it’s your first time creating a budget,” says Marchik. “That way, you can constantly check that everything is on track and make adjustments if necessary.” At the right time,” she says. “The monthly review is key because then you can see where you’ve progressed.”
2- Write down your specific financial goals
On that note, the report says that every expert cnbc.make-it spoke with recognized the validity of the statement that says, “If you don’t write down your goals, you’ll have a hard time achieving them.”
This applies to both short-term goals, such as saving for a car or house, and long-term goals, such as saving for retirement, and is especially important for couples because communication about financial matters is essential.
“If it’s all in one person’s head, it can be confusing when talking about big decisions,” says Morton. “I think on paper it makes communication easier when more than one person is involved in making financial decisions.” .
3- Establish a habit that supports saving or investing
The report says that often the biggest obstacle to achieving financial goals is that people don’t prioritize them correctly. “If you open a savings account and say, ‘Okay, let me see what’s left at the end of the month and I’ll save it,’ then you’re probably not going to get where you want to go,” Marchik says.. “Instead, when you get paid, first put aside the money you want to save or invest.” Then start spending after that. A report states that in 2019, millionaire Grant Sabatier told CNBC Make It that this strategy helped him grow his bank account to $1 million in 5 years. The same concept applies to any raise or bonus you receive at the end of the year. This extra money can help increase the value of your savings and investments.
“It’s a perfect time to get in and save more, put something into your investments before they get into your greedy little hands,” says Charles Sachs, chief investment officer at Miami-based Kaufman Rossin Wealth.
4- Invest in your financial literacy
Sacks tells her clients that if they focus on learning about money, even if they’re not interested in financial topics, they can make good financial decisions throughout their lives. “Pretend that money, finance and investing are your new favorite hobbies,” adds Sachs. For beginners, Sachs recommends a free book, Building Wealth, published by the Federal Reserve Bank of Dallas, which he says can be obtained online and is also available in print upon request.
“Training your brain to recognize money is arguably more rewarding than anything else you’ll ever do,” says Sachs.
5- Start now, no matter what
It’s easy to make excuses that the timing isn’t right, Morton says. Maybe it’s a bad market, or maybe you’re dealing with personal issues, but you need to find a way to get started right away. “The frustrating thing we sometimes hear is when people think it’s a good time to start; it reminds me of that saying that the best time to plant a tree was last year and the next best time is now.”
His thinking is that the sooner you start, the more time your money will have to grow. And when you’re planning decades into the future, even a difficult first year of saving or investing should be a blip and nothing more.
Morton concludes, “Once you start looking at things from a long-term perspective, you quickly start to dispel some of those worries. A month or a year is really just a very short time to worry about.”