You might have experienced layers of emotions as a result of extreme volatility in the financial markets. This means you have to learn how to possess a solid foundation of wealth management and knowledge. With this, you can have a clear vision of what has to do to stave off fear and stayed on the path to financial freedom. These basic wealth management principles will not only give you a perspective on your money. But will also add context, clarity, and confidence to better financial decisions. Above all, these attributes will take you through the good and bad times in the financial market.
Align your money decisions with your values by acknowledging the different sides of money. The sides to money are divided into two. Firstly, the technical part which has everything to do with numbers, math, and contracts/legal documents. Secondly, the emotional side and it has everything to do with the heart and soul.
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Without a doubt, making better financial decisions, requires that you truly focus upon this side. Clearly, it’s of utmost importance to examine your feeling about money. Not only this but you have to search your heart for the stories and messages you have about money. It could be stories and messages you have carried throughout your lifetime.
Some better financial decisions if watched closely are defined by these beliefs, messages, and stories. Additionally, it happens with or without your awareness because it had already because of a part of you. Finally, these messages or stories are related to your drive to pursue money, envy, or save money obsessively.
The beautiful part of this is that when you increase your awareness and where your values lie, you will be able to make better financial decisions. Subsequently, you will eliminate beliefs that do not serve you well and hold unto those that do. In this way, your values will be aligned with your financial decisions.
Why do you do it?
After you have aligned your values, you should move into understanding the “why” behind your financial goals. Those answers to the purpose of your wealth, what you want to achieve, and how you plan to do should be gotten. Truthfully, If you knew with utmost conviction what your financial goals are, you’ll make better financial decisions. At the same time, you’ll be intentional about them.
Thankfully, it doesn’t matter what those objectives are, they could be;
• Saving for an early retirement
• Making sure your spouse/family has enough resources to pay bills if you unexpectedly kick the bucket
• Giving generously to others, etc.
Whatever your reasons are, you need to internalize them and remain focusedsedto achieve them. By the time you know the purpose of your money, it will give you the confidence to make better financial decisions. Again, it will help you avoid making financial decisions that don’t align with your goals and values.
To know your financial position, you need to take inventory of the things you have and be intentional with your spending. Doing this requires embracing the technical side of money which leads to consciously accessing what your assets and core liabilities are.
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Keep a balance sheet that gives you an idea of your financial position at a glance. Start by listing all assets and liabilities and keep them organized, to allow you to track changes over time. This act ensures there’s always enough money in your checking account to foot your bills.
Indeed, you can’t make better financial decisions if you don’t know the overview of your assets and liabilities. Even so, it will ensure you are keeping track of your financial affairs and better prepared for unexpected events.
Secure your financial information
You ought to be vigilant and keep your financial information secure especially now that we are in the age where information is available electronically. Obviously, you can do this by creating unique passwords for all your devices and enabling multi-factor authentication for your emails and other accounts. Most importantly, making better financial decisions in this area makes you stay away from clicking links that promise untold wealth. Those links are likely to be dangerous and bring financial ruins instead of an increase.
For you to make better financial decisions you need to understand the basics of investing. Undoubtedly, you might be thrown off balance by the market turns. And to avoid losses, you need to be rightly aware and plan carefully. The answer is to define a well-thought-out investment strategy and stick to it as long as it’s geared towards your goals.
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Hire a skilled and smart advisor
You must harness the power of a skilled and smart advisor because keeping track of your finances needs time, awareness, and care. Furthermore, you could be a busy individual therefore delegating this task to an experienced advisor can help you keep track of your financial plans. Also, they can help you take care of the technical side of your money as well as guide you around some of the emotional aspects too. When you are looking for who to hire be sure that you hire well for your unique circumstances, needs/and style. A good financial advisor will help you make better financial decisions as your objectives and interests are aligned.