No matter how old you are, saving money is easier said than done. Every time you think you’re ready to save, something unexpected inevitably comes up and you end up having less to set aside than you originally hoped. In today’s post, AOG Wealth Management shares handy financial planning tips for every age group.
Build Your Credit Score
While improving your credit score may seem unrelated to saving money, it’s actually an important tool. Just make sure that you keep your debt low and pay your bills on time. For young professionals, even the simple act of paying your phone bill on time can improve your credit score. A lower credit score leads to benefits like a lower cost of borrowing which leaves more money in your pocket for setting aside for investing.
Be the Master of Your Credit Card
A credit card is an important financial tool, and you should be its master and not the other way around. Financial advisors agree you should use credit cards as needed but never carry a balance. Credit cards are also useful for emergency expenditures.
Once you enter your higher earning years, you should be thinking about protecting yourself and your family with insurance. This is especially important if you’re the breadwinner. If you are suddenly no longer able to work, who will pay for your family’s mortgage, educational expenses, and the like?
Avoid Lifestyle Creep
Lifestyle creep happens when your cost of living rises as your income rises—so even though you’re making more money, you’re still not able to save. For many, this happens because there’s simply more money to spend. Our wealth management advisors note that this is a trap that many people tend to fall into, especially when incomes grow over time.
If you really want to save money for the future, make sure you keep your auxiliary expenses at a minimum. Remember: just because you have money to spare doesn’t mean that you should spend it.
Give us a call at (866) 993-0203 for more information on our services. We offer financial planning throughout Washington, DC and Northern Virginia.
The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.