Life is all about uncertainties! It is important to set aside money, not only for the major stages in life but also for emergencies. We would recommend at least the following:
- Have at least enough in savings to cover three-six months of rent and expenses.
- If at all possible, set aside at least one-fourth of your income each year for emergencies, big purchases (like homes or cars), and retirement.
Although it is not always possible to meet the saving goals above, the best way to start is to start saving a little at a time.
Once you create a budget within which you can live comfortably, you might want to look at ways of cutting back on other expenses or creating more income.
There are many ways to increase your income by investing savings and spending money wisely. If you have started to set aside money, you may want to find a trusted financial advisor to help you make financial decisions.
Just be sure that the chosen one have a good reputation, are trustworthy, make you feel comfortable, can clearly show how they are handling your money and what (if anything) they are charging you for. Above all, be sure that you keep control over your money! Your advisor may make suggestions about how to handle your money, but you should know what is happening to your money and make all final decisions.
Click here to talk to your trusted professional Wealth Architect about ways you could cut costs and earn more off the savings you have. We could give you many ideas on making the most of your money.