By creating positive cash flow and the right financial strategies, investors can grow their wealth. With more cash comes the opportunity to create more flow, so it’s important to understand that cash flow is simply the difference between the amount of money that comes in and goes out each month.
To become a cash flow king, investors should prioritize expenses and create a system to manage them. A good management method is to separate spending into three buckets and establish accounts for each: fixed expenses, discretionary expenses, and savings/investments. Once the amount that needs to be allocated to each bucket has been determined, automatic transfers from a main checking account should be set up. This will provide a spending limit for discretionary expenses that will make a budget plan easier to follow.
Work with your Enso | Sonoma financial advisor to make saving and living within your means a priority!
Having enough money during retirement is a big concern for many investors. Since a large amount of workers in their 50s and 60s are behind on savings, inadequate preparation can be a common source of stress. Fortunately, running out of retirement funds is avoidable with this strategy.
The National Bureau of Economic Research has determined that working a few extra years makes a more positive impact on retirement income than increasing contributions in the last decade of one’s career does. Not only does the extra time allow investors to keep funding their retirement, it also postpones withdrawals, therefore giving the money more time to grow. Working longer can also boost Social Security benefits, which furthermore leads to a higher income stream after work.
As you prepare for or enjoy the perks of retirement, ask your Enso | Sonoma financial advisor for helpful advice.
American investors are known to avoid financial decisions, even when it’s not in their best interest. Trends in household savings and retirement plan participation rates are great indicators of this risky behavior. While most believe financial decisions to be complicated, time-consuming and unrelated to feelings and emotions, it’s important to remember that a different perspective can give you the motivation to take control of your personal finances now.
When making financial decisions, incorporate these actionable tips to create a sense of urgency:
For helpful guidance in making financial decisions, work with your Enso | Sonoma financial advisor.