Download
1 / 8
80 likes | 81 Views
According to Delaena Kalevor, another common mistake that entrepreneurs make is combining their business-use and personal-use assets. few important benefits to their financial future. Click here https://shorturl.at/prsFX <br>
E N D
Accumulating wealth has shown to be a foreign concept for a lot of people who are forced to live check-by-check. For those unfamiliar, this means that they have to allocate all of their expenses perfectly so that they can avoid succumbing to debt in the long-run. Hence why wealth accumulation and management are two of the most important concepts in the world of finance. Tips for Wealth Management from Finance Professional Delaena Kalevor
Surround Yourself with Like-Minded People Generally speaking, the person that has a lot of finance-educated friends and family members will be less likely to make unintelligent purchases. This is because they will be influenced by the actions of those around them enough to avoid making obvious mistakes that could cost them in the future.
Have Enough Liquidity in Your Reserve • According to finance professional and former Vice President of Strategic Initiatives for Synchrony Financial, Delaena Kalevor, having enough liquidity in one’s reserve is a crucial concept in finance. • Before explaining this concept, however, one should understand what exactly a reserve and liquidity mean. First, a reserve accounts for all of someone’s back-up funds that are meant to serve as a safety net in extreme situations.
Figure Out Your Long-Term Plans One of the most common financial mistakes that people make tends to revolve around their contingency plans. More specifically, plans that relate to their funds once they pass away.. First, it will ensure that all of their belongings go to the exact person or group of people of their choosing. the state will assign someone’s asset to the next in line of succession, which could be family members that the person is not close with. Also, a will ensures that the funds will not be forfeited to the government if there is no person related to the deceased.
Do Not Mix Personal and Business According to Delaena Kalevor, another common mistake that entrepreneurs make is combining their business-use and personal-use assets. This mostly happens when someone is self-employed and has to allocate their expenses between their company and personal accounts.
Keep Track of Your Interest Rates • A lot of people who purchase assets via financing expose themselves to interest expenses. Over time, however, their credit history may improve and they could become eligible for more competitive interest rates . • So, looking for re-financing options and more competitive loans could be an easy way to save money every month and avoid paying large lenders high interest costs.
Do Not Buy Easily Depreciable Assets in Bulk Ultimately, the Key to wealth management is to manage capital purchases. To that end, it is crucial that one does not spend a large portion of their income on easily depreciable assets. For instance, purchasing a brand-new vehicle is often a mistake as one year of possession will decline its value by over a third in most cases. Instead, finding ways to invest excess capital and purchasing already depreciated assets might be a better way to be profitable.
