As an independent financial adviser, you understand that each of your clients is unique and, therefore, has differing financial goals, commitments, and challenges. It’s your job to help them manage and grow their wealth so that they are able to meet the challenges and achieve the goals over time.
This includes offering experienced and knowledge advice on a wide range of financial matters from saving to retirement funding to investment options. But when was the last time you spoke to your clients about smart money habits – about the daily money tips that could change their financial situation for the better? This is especially important for your young, professional clients who are doing well in the world of work but have a way to go when it comes to complete financial security.
Here are 4 smart money habits these clients should be following today
1. Save first
Many working professionals feel secure in the fact that they have a monthly salary – a salary that they choose to spend before considering saving any part of it. This is a mistake. Anyone can fall ill, be injured, or get retrenched – all scenarios that would put an end to a steady salary. Individuals who practice smart money management know that they need to save a portion of their salary before spending any of it. Rainy day emergency fund, debt repayment, retirement plan... all these require funds.
2. Pay off the credit cards
Sometimes debt is unavoidable (think student loans or a house bond) but certain debts are wealth killers. Individuals who don’t pay off their credit cards end up in greater debt or just paying off the interest for years and years. Those with financial smarts get rid of credit card debt as quickly as possible and, better yet, don’t build it up in the first place.
Research shows that individuals who have control of their finances are healthier, happier, and wealthier in the long run. Budgets show how money is really spent, how much is actually needed every month, and create a sense of accountability for the person managing the funds.
4. Don’t put all your eggs in one basket
A diversified portfolio is a healthy portfolio. Individuals that invest all their money in one venture or activity (for example, investing without saving) run the risk of great losses.
Are you an adviser who wants to work with a financial services house that understands the needs of independent advisers and their clients? Talk to us – at TRG, we love being independent financial advisers and we are always on the lookout for smart, ambitious individuals who work hard and want success for themselves and their clients.