Managing your finances is not one of the easiest tasks in the world. Usually, most people can grasp the concepts of current accounts, savings account and direct debits but start mentioned concepts such as compound interest, ISAs, volatile stock markets and returns rates and people are soon lost. Love it or hate it, the world revolves around money which is why an intermediate level of knowledge can award you with an array of wondrous financial benefits.
Whether you’re managing your personal finances or working out your business rates, here is some professional financial advice to take on board from the experts themselves.
1. Investing is a Long Game
Regardless of how much patience you have, whatever you are investing in, whether it be a business or in stock, never expect success in the short-term. It doesn’t matter how much you’re investing or where less than 1% of investments will strike gold overnight if that. On average, government or corporate bonds will return around 6% a year. With this in mind, it will take a lot longer than a decade to even double your money.
2. Teamwork is Key
If you or your partner have a financial burden, for example, debt or outstanding credit cards, it’s not common to hide this information, either out of fear or shame. However, once discovered, this can have hugely negative effects on the relationship itself, destroying elements of trust and security.
William N. Schmidt, a Financial Manager from Best Australian Writers explains;
“You and your partner make up a team. Whether you’re married or not, as with any kind of project, teamwork is the best way to move forward. Especially when it comes to financial issues, some of the biggest decision may be resolved a lot easier if you acquire an outside opinion from somebody that you trust”.
3. Setting Up Your Children
You may think that you do so much for your children already and may already spend so much money on them day to day but, putting some money aside for your children in later life can be so beneficial. No matter how hard you try, nobody really knows what their child is going to grow up to become which is why setting up investments such as savings accounts and trust funds can be an extremely positive notion. Imagine if your child has a billion-dollar idea and needs some money to invest?
4. Debt Leads to More Debt
Debt management is one of the most important aspects practices you can follow. With poor levels of debt control, payments are missed, interest starts to build and late-payment fees, more often than not, can lead you into more debt than you started with. Make sure you set out monthly budgets, plan and monitor your spending and take note of the letters from your bank. This will enable you to get out of debt a lot faster.
If you have trouble managing your money, this is nothing to be ashamed of. If this is the case, always seek the help of a financial advisor or professional.
5. Refine Your Insurances
Whether you’re running a business or purchasing insurance for your home or property, it pays to check every couple of months to ensure you are paying for the insurance that you need. From health and life insurance to car and homeowner’s insurance, your needs and requirements can change month to month and you can save a tonne of money if you ensure that you are only paying for the coverage that you need. You may find new deals and offers such as combined insurance policies that cover everything, rather having to pay out to separate companies for separate policies.
A further consideration when considering your business’ finances is an accountant. The accountant you decide upon can help you with not only your taxes but also help with setting up your insurance and debt management previously mentioned. They will be able to recommend the best software and technology to make controlling your firm’s finances a painless experience.