Investors are feeling vulnerable, but don’t let market uncertainly derail your goals.
The best way to calm your investment worries is to focus on your long-term net worth goals. The next best way is to save more. Here are five fundamental money management principles to stick to.
Plan: People don’t just stumble upon wealth. They create a plan with timelines to reduce debt and invest in assets.
Get help: Who are you turning to during this financial turmoil? Get professional financial help from a financial advisor. Ask for referrals from friends and interview at least three.
Be frugal: It’s never a good time to overspend. With a skittish market, now is really not a good time, as it can lead to job losses and further economic slowdown. Buy only what you need and stick to a budget. If you’ve got debt, get rid of it fast by setting up automatic payments through online banking, tackle high-interest debt, and pay a little extra on payday — even if it’s only $20.
Invest: If you haven’t started investing, get on it! If you have, invest more. Investing early allows compounded interest and reinvested returns to grow your money greater than if you wait until mid-life to start. Stats show we’re living longer and the cost of living is increasing. Thus, experts recommend saving 15 to 20 per cent.
Give: Giving doesn’t just happen; you have to plan to give. So, build some type of giving into your financial plan.