“Spend less than you earn” sounds obvious but is not always easy to do for many households. When it comes to managing finances, you need to go beyond this simple math and start training yourself to develop a good set of financial habits.
As an experienced financial planner in Northern Virginia, AOG Wealth Management shares some tips on getting developing a good financial mindset with these 4 tips:
1. Tackle Bad Debt
There is good and bad debt. A mortgage is an example of good debt. Carrying credit card balances is an example of bad dept. Start to eliminate bad debt by targeting the credit cards with the highest interest rates. Alternatively, tackle the smaller balances first. Either approach is a start and a critical step in developing good financial habits and getting you on track to reaching your financial goals.
2. Create a Budget
A budget can help you manage your spending urges and bad financial habits. Many people fail to stick to their budget, because impulsive behavior can get in the way. With a budget, you become more aware of what you spend in a given time period…say monthly. Ultimately, by staying within budget, you learn to avoid spending money on items that are “wants” vs “needs” and you become better of living within your current financial means…and ideally have money left over to save and invest for your retirement.
3. Treat Yourself Occasionally
Once you have your good financial habits in place and you are cutting your credit card debt and building your savings, it’s ok to treat yourself occasionally. Keep in mind that the treat doesn’t have to be grand or costly, just enough to treat yourself for a job well done. Once you have prioritized your spending, it will be easier to find affordable ways to reward yourself. This will help you manage your behavior and nurture the right financial mindset.
4. Talk to a Financial Advisor
Lastly, consult professional financial planners, such as AOG Wealth Management. We help homeowners reach their full financial potential and keep them focused on their financial goals through custom-fit services. Our services include small business, asset management, and wealth management. Our goal is to develop unique strategies that will help individuals and businesses make the right financial decisions. As your wealth management expert serving Great Falls, Reston, Ashburn and all of Northern Virginia and the Metro DC area, we have a broad knowledge on retirement planning, savings plans, investment strategies, mortgage assistance and more.
To learn the best financial solution for you, call us at (866) 993-0203. We will be ready to assist you.