A financial strategy helps you clearly understand how much money you have, what you spend it on, and how much you can save. This allows you to avoid unexpected expenses and accumulate savings for the future, for example, for holidays, large purchases or old age. Investment advisor Yulia Kuznetsova, founder of the Investment University, told socialbites.ca.
According to the expert, many people take loans or loans and here the financial strategy teaches how to manage debts competently so as not to fall into the debt trap and not pay excess interest.
“Also, our life is full of surprises; illness, job loss, force majeure. With a financial strategy in mind, you can create a savings cushion that will get you through tough times without compromising your wealth. I recommend creating a cushion equal to six months’ expenses and depositing the funds in a bank deposit with regular interest renewal. “This protects your savings from inflation and provides stability,” he said.
Among other things, a financial strategy allows you to set clear financial goals and systematically achieve them, such as buying an apartment, a car or a dream trip. This gives confidence in the future.
The expert emphasized that creating a personal financial strategy is not as difficult as it seems.
“Analyze your income and expenses. You will understand where your money is going. You can start by tracking all your income and expenses. Then you will be able to determine where you can save or, on the contrary, where you need to increase your expenses. Also define financial goals and what you want to achieve. These can be short-term goals (e.g. saving for a vacation) or long-term (e.g. buying a house or building a retirement fund),” Kuznetsova said.
Also create and develop a plan to achieve these goals based on your abilities. Include steps to save, invest, and manage debt.
“Regularly review and adjust your strategy as life circumstances and financial opportunities change, because a financial strategy needs to be flexible. Remember that financial strategy is not a luxury, but a necessity for everyone who wants to live calmly and look to the future with confidence. Take the first step towards your financial independence today. “Create your plan, create a financial cushion and start investing in your dreams and goals,” he concluded.
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Source: Gazeta
Barbara Dickson is a seasoned writer for “Social Bites”. She keeps readers informed on the latest news and trends, providing in-depth coverage and analysis on a variety of topics.