Getting your personal finances together can be a challenge. If you are not the type of person that is able to easily save then you might need a bit of assistance. Luckily, there are many amazing professionals out there that live to help in this regard. Hiruy Amanuel, co-founder of venture capital firm A.J. Ventures, is one of those individuals who can lend his expertise to your cause.
Still, you might want to know how you can start this process on your own.
While getting the correct financial help from the right experts is useful you might want to wait until you have a firm grasp over how you spend your money and what you spend it on. To do this there are a few ways paths that you can take. To help you out on your road to financial stability here are a couple of tips that you can keep in mind in order to stay on top of your budget.
Track Your Expenses
The first step that you are going to want to take when planning for your financial future is to track your expenses. This can be difficult because you might not imagine that some of your purchases on a daily basis are worthy of noting. This is especially true of small buys, like coffee or other drinks that you might grab when you are running from one place to another. While the totals might look insignificant it is good to remember that the numbers add up.
Look at what you tend to spend on a weekly, if not daily, basis and you will start to notice where your money is going. The beauty of tracking all of your purchases is that you are able to start making adjustments right away. If you feel that you are wasting all of your funds on small, frivolous purchases then you can easily begin to cut back and stop throwing your money away.
Formulate a Financial Plan
Another way for you to begin keeping on top of your budget is by having some kind of plan going in. Saving money is a good idea but if you have an actual goal that you are reaching for it becomes a lot easier. If, for example, you are hoping to begin saving for your retirement then you will want to think about what age you’d like to retire. Think about your current age, how much you’ll need by the time you retire, and what it will take for you to get there that amount of money.
Having a plan allows you to track your progress in a tangible way. If you want to save a few hundred dollars each month then you can begin putting money aside right away. After a few months you can take a look at your budget and see how far you have come. If you think that your saving tactic is working you can keep on in the same manner or you can make appropriate fixes if the numbers aren’t looking the way you’d hoped.
Know Your Assets
Staying on top of your finances goes beyond how much money you are able to save in a given time. You have to consider your wealth as more than just your funds. In fact, most people are able to calculate their worth based on their assets. This includes anything you own of value like a home, vehicles, or even your business. The value of each of these adds to your total net worth which can help to shape the way that you view your financial status.
When it comes to calculating your assets you might find it useful to reach out to the right experts in the financial industry. Hiruy Amanuel and his partner Allison Littlefield began their venture capital firm in order to help individuals to get a feel for how they can make wise investments and discover the correct funding to follow their dreams. Make contact with organizations like this in order for you to get a more profound feel for what you can do to make the most of your assets and investments.
There is no time like the present to begin focusing on your finances. The sooner that you begin the easier it will be for you to notice a significant change. Your path towards success might include a bit of trial and error. If you drag your feet then you will have less time to fix any mistakes that you have made. When you begin right away then you are giving yourself the leeway to take risks and make the most from all of your endeavors in the world of finance.
Saving money is not always easy but it can become a simple task if you know the right way to begin. Use the above tips to fuel your fire in regards to saving money. In no time you are going to have all of the tools and resources that you need to make some serious magic happen with your financial future.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.