The Secrets to Getting Your Money Right - From a Financial Advisor


I need a do-over on January! Seriously, where does the time go? The last interview I did with an entrepreneur and his advice on financial prosperity was such a success (here), I decided to follow it up with more advice from an industry insider. By day, I work at one of the top investment banks in the country so who better to tap into for tangible ways on getting your finances straight and growing than one of my esteemed colleagues?

1. What are your 5 tips to begin investing?

  • Get knowledgeable - read a few books on personal investing
  • Pay off high-interest rate loans before you begin investing
  • Research and invest with trusted platforms  - avoid scams or high priced brokers
  • Review any 401k or other plan offered by your employer.  Often it is best to invest in these products for the additional tax benefits
  • Make a budget and figure out how much you can invest every month

2. Any cautions for a first-time investor or someone who isn't adamantly following the markets?

  • Invest a little at a time, over time.  Avoid making a large investment just before a market downturn
  • Diversify your investments - no more than 5% of your investments in any one asset

3. The simplest way to create a budget?

  • Use spreadsheet software to lay out all your expenses
  • Look through your last few months of bank and credit card statements to lay out your current level of expenses
  • Look through each line item and see what you can cut out while still maintaining an enjoyable lifestyle

4. What are your 3 best tips to eliminate or conquer debt?

  • Eliminate wasteful spending and apply savings to debt balances
  • Pay off high-interest rate balances first
  • Obtain lower rate personal loans or 0% intro credit card offers to pay off high rate balances

5. Briefly summarize your philosophy on wealth building. 

  • Building wealth is a matter of saving and investing the saved dollars over time in a diversified portfolio over decades.  Building significant wealth comes from leveraging other people in a way where everyone benefits - leverage other people's money by borrowing at a low rate and investing at a higher rate.  Leverage other people's efforts by starting a business and hiring/contracting people to execute your plan - provide a wage to others while accruing value for yourself.  Building significant wealth also can come with additional risks which you have to weigh for yourself.

6. Advice for anyone wanting to pursue a career in finance.

  • Attend schools that have a history of sending people into the specific financial field that you are looking to enter
  • Make as many connections as you can in the industry
  • Work your way into getting an internship - don't concern yourself with limited pay at the outset

Favorite takeaways:

  • Eliminate wasteful spending
  • Use spreadsheet software to lay out all expenses
  • Building significant wealth comes from leveraging other people in a way where everyone benefits

I love this advice. It's simple and direct. All you have to do is have the self-control to implement. I will be the first to admit, I am horrible at budgeting, but when I sit down and see how much I actually spend on things that I absolutely can do without, it has really helped me to tighten up a lot. Being low on funds, is a sobering way to get focused and financially astute.

What are your thoughts on this topic? Is there something you want to learn more about? Let me know, either here, FB or IG?

Cheers to us getting ALL OF IT in 2018!


Love x Light

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