A Clint Eastwood dirty Harry movie from decades ago pretty much summed up the topic of personal finance: “A person has got to know their limitations.” So be it! How a person manages, spends, and invests their own money that has the pictures of dead presidents on the front, can have a profound impact on your personal life. And for your further clarification the schools that teach you the game of personal finance are few and far between. However, you should pay that statement no mind because the basics are usually quite simple and will never change. What your parents and grandparents did during their lifetime may not work for you because that was then and this is now, when most folks are at the steps where things are newer with better tools to manage your money and investing your money will always be better than doing nothing with it, and planning for the future will always be in style.
Golden Rules To Live By
If you decide to go-it-alone, one of your closest friends may suggest that managing your own finances is probable going to feel like you’re pinned down in nothing but reams of paperwork and numbers; most of which you may not understand. Then your Uncle Fred might put in his two cents with a comment that handling your own finance conundrum by telling you his simple formula is you make X amount of dollars, but you spend Y amount, or trying to make sure that Y is less than X – get it? Actually, the fact is that your personal finance is as much about habits, psychology and the values you are living by. That said, make sure to do these three things:
* Use the Clint Eastwood theory – know your limitations.
* Spend less money than you earn so you’ll be able to deal with the minefields that will surely come, sooner or later.
* Make the money you invest make more money by investing in things that will do just that, allowing you to make money while you’re sleeping.
An Honest Assessment!
What have you recently dreamed about when it came to your personal finance situation?
Certainly many people dream about having their own business, so to get the ball rolling, starting with an area where you have a high confidence level and then let others do the rest. You may be loaded with a wheelbarrow of confidence and feel you can act as your own “advisor” yet a dab from a professional money manager could be the ticket to success in the stock market, for example. In other words, go ahead and make your own selections but hire or partner with an outside manager to handle your fixed-income investments. Then as time passes and your abilities grow as well, you would be in a strong personal position to bring all or some of your investment back home to you.
Running And Managing Your Own Investment Portfolio Advantages!
You can save a few bucks by handling your own money. For starters, you can save that one percent asset management fee most brokers and money managements charge regardless of whether your portfolio goes up or down – they get paid. Well, sure, that one percent seems a piddling amount, but it means that, for example, you’re currently paying $10,000 for every one million you have under management, and you’re paying it every year to the person or firm who is managing your money, could turn out to be a huge OUCH! Remember, your personal finance will not be risky, if you keep your eye on the road.