Money Management

MONEY MANAGEMENT

We hear how important it is to save for retirement our whole lives, so when the time comes, it can feel somewhat daunting. But managing your money doesn’t have to be complicated. By simply writing down or planning out any foreseen big expenses in the future, you can cut back on the guesswork of budgeting. There are several tools meant for daily or weekly budgeting, too that can help you strategically use and save your money and make it go the distance. These can be done online or with a financial advisor, if you wish to consult and expert.

NCES

The NCES, or National Credit Education Service, is a nonprofit organization that offers free credit counseling and education. It’s a great resource for getting your financials in order, from improving your credit score to overcoming debt and financial struggles. Through a variety of services, the NCES not only helps you in understanding your credit and fixing any outstanding issues you may have, but educates you in the goal that throughout the rest of your financial future, you will be armed with information that helps you thrive. This includes:

Helping to clean credit reports of incorrect or outdated information
Giving you tools to protect your credit in the event of unexpected loss, like unemployment or illness
Advising you on loans
Helping you prepare and maintain a realistic budget

Visit the NCES site for more information about consultations and services they offer, or download their free credit handbook to get started today.

RESIDUAL INCOME

Residual Income is a term used for any sort of cash flow that is passive in nature. This can include investing or anything that requires minimal or no work. After retiring, residual income can become a reliable and dependable income if done correctly. Some most common forms of residual income are stock investments and rental property.

Rental properties can seem like a huge investment at first, due to the amount of money it requires up front to purchase a house. But real estate, in general, is a pretty stable investment. Once a house is fully paid off, any money you receive from renters is money that goes directly into your pocket. Some who own several properties end up funding their entire retirement through renting. If you’re just beginning to think about investing in real estate, start with one conservative property and go from there. Consult with real estate agents to learn more about your area, the general demand for rentals, and the value of the neighborhoods around you.

Investing in stocks is another option for generating residual income. It’s a fairly easy process to open up investments in various stock markets, but it’s always a great idea to meet with a financial advisor to talk about what might work best for you. Some require large sums of money to see significant cash flows, while others take considerable amounts of time to get a return on your investment. Whichever investment is right for you, once you invest, there is little to no action needed for you to start generating residual income. If you don’t know where to start, consider joining an investment club or visiting your local financial advisor for an initial consultation about what might be best for you.

Money Management