Where did you learn how to handle your finances? Maybe you learned from your parents or maybe you simply learned by over hearing family members at the Sunday dinner table when you were growing up discussing different aspects of handling their money. Maybe you’re self taught and learned online or read up on finances. Either way, it is important to make sure you have habits that support your financial goals.
While any background is a great starting point, what you might have learned in the past could be holding you back from a successful financial future. Your elder's financial outlook might have yet to transition with the times, and the books or videos you used to educate yourself might have taught you some bad habits.
At Park City Wealth Advisors, we have seen our clients progress significantly toward their financial goals by making minor adjustments to their financial habits.
In this blog, Park City Wealth Advisors would like to bring to your attention a few financial habits that might be holding you back from reaching your financial goals.
If You Are Waiting Until "Later", You May Be Sabotaging Your Financial Goals
We see many people set aside their financial goals until "later." Later can mean many different things, but for the most part, it usually means waiting to exercise healthy financial habits and building wealth until you are making more money.
Many people will wait until they experience an increase in income to work toward their financial goals. However, Forbes explains it best: "Putting your good money habits off till "later," when life will get easier" is a "trap" because "The thing is, somehow the minute your income increases, the demands on your money seem to as well."
Everyone in the world wishes they could be making more money. If you wait until you are fully satisfied with your income (which might never happen), you will have wasted a lot of time. Begin working toward your financial goals now. As your income increases, your savings can increase as well. A start is a start! It is rare to wish you started later. You will only thank yourself for starting when you did.
You Are Thinking in Reverse
It’s payday! What do you do first with your paycheck? Most people will spend some money when they first get their paycheck. Next, people will pay their bills. Lastly, the remainder of your paycheck is set aside for savings. What if we told you this is backward?
It might seem like this habit makes sense when stuck in this pattern. But from the outside looking in, there is a better way to manage your paycheck: "Instead of spending the rest of your take-home pay, you'd actually take another cut of your paycheck and put it toward your biggest financial goals," says Forbes.
Our guidance to you:
Put money away for your financial goals and savings first.
Pay your bills.
Lastly, spend anything that is left.
Your financial goals are important and should be the priority.
You Are Not Using a Financial Advisor
"While a six-figure inheritance or high-paying job can land you in the top 1% of earners, it's the little things—your money habits—that often make the difference between a life of prosperity and one of constant financial stress," says Forbes.
Many people believe that they have their finances under control. You are probably doing a great job with the knowledge that you have thus far. However, there is still a lot more to consider when it comes to your finances.
Morgan explains: "All the time, folks will come to us with a Robinhood account and believe they have their finances dialed in. However, the truth is there is that there is way more to your finances than just putting some money in AAPL or META."
You must plan for retirement, allocate a certain percentage to international, and be prepared for the unexpected.
So, let's solidify your financial picture. Consulting a financial advisor means having an experienced professional in your corner with a steady aim on your financial goals.
For a proven financial strategy based on your needs, goals, and personal risk tolerance, contact Park City Wealth Advisors today!