Kudos to you for making it here! I am so glad to have you here as a part of the Savvy Money Moves community!
I am really excited to help guide you to a more Savvy financial life! Declare today the financial bookmark of your life.
I started Savvy Money Moves to teach you what is really possible for you and your family when it comes to financial strategies that the financially privileged have used for generations to create lasting wealth. As a Financial Strategist, I understand how important it is to have a knowledgeable Advisor that you can trust. Times have changed and as people are recovering from market loss during these turbulent economic times, American families need answers! Face it, financial terms, products and people can be a bit daunting for many. I know it was for me, so I came up with a solution. The solution is to use the knowledge and expertise that I’ve gained to support your financial dreams and goals.
I hope you will find the information useful. Be sure to visit www.savvymoneymoves.com for more tips, tools and resources to help you continue to make Savvy Money Moves!
Cheers to your next Savvy Move,
Chinyere T. K. Norman
Founder and CEO of Savvy Money Moves
Licensed Financial Strategist
Order your steps…
No matter who you are and what kind of plan you have in mind, we have to do some very important things first if we are sincere about accomplishments. Start with the end in mind. If it’s a career goal, exercise goal or financial goal-what does winning look like? Think about it. If you aren’t sure where you are going, you can’t be too confident about getting there can you? That’s why when it comes to making Savvy Money Moves we will start with goal setting! On your mark…get set…LET’S GO!!!
1. SET S.M.A.R.T FINANCIAL GOALS
A S.M.A.R.T. goal is defined as one that is specific, measurable, achievable, results-focused, and time-bound.
Specific: Goals should be simplistically written and clearly define what you are going to do.
Measurable: Goals should be measurable so that you have tangible evidence that you have accomplished the goal. Usually, the entire goal statement is a measure for your long-term financial goals, but we must account for the short-term or smaller victories-to-be.
Achievable: Goals should be achievable; they should stretch you slightly so you feel challenged, but defined well enough so that you can achieve them.
Results-focused: Goals should measure outcomes, not activities.
Time-bound: Goals should be linked to a timeframe that creates a practical sense of urgency, or results in tension between the current reality and the vision of the goal. Without such tension, the goal is unlikely to produce a relevant outcome.
2. IDENTIFY YOUR FINANCIAL PERSONALITY
Money is a tool and should be used as a resource to fuel our goals, obligations and ultimately our financial freedom. Our relationship with money determines whether or not we use it in that way or if it presents a challenge for us.
Who are you financially?
* Spender - Every month there’s nothing left. Living paycheck to paycheck. No savings, little put away for retirement, no emergency fund.
* Too Busy - who has time to plan for the future? Living day to day for the moment. Hectic, out of control.
* Over Analytical - Analysis leading to Paralysis. For whatever reason, too busy creating spread sheets and doing research as the years go ticking by. Can’t seem to “pull the trigger”.
* Ready, Fire, Aim Investor – has money, wants shortcuts. Take a hot tip and buy. Very little due diligence; little if any research. Impulsive.
* Concise, Precise, Focused, Act Together – has a plan, follows the proper steps. Has a budget. Has goals - focused, deliberate, “walks the talk”.
3. DETERMINE YOUR RISK TOLERANCE
When it comes to investing it’s so easy to make decisions based on emotion. Just because you wear the latest trend doesn’t mean you should invest in it. Your investment decisions should be based on logic although emotions may be present. First determine your risk tolerance. Your risk tolerance is determined by different factors. Here are a few important factors.
* age
* long and short-term financial goals
* net worth
* obligations
4. SECURE YOUR FAMILY WEALTH LEGACY BY SECURING LIFE INSURANCE
Countless people spend hundreds of dollars on Lotto tickets every year even though their chances of winning are one in 20 million. These same people do not see the need to purchase life insurance, which will guarantee 100% of the family’s money should a person pass away. If we know anything in life, it’s that we will one day die, so why not
bet on a sure thing rather than throwing your money at an unrealistic dream? Those are guaranteed odds, yet so few people take advantage!
The wealthy understand these odds. They invest heavily in PROPERLY STRUCTURED life insurance and use life insurance as a way to build and create generational wealth. If you’ve ever wondered why the poor stay poor and the wealthy stay wealthy, that’s one of the reasons.
**ONLY ABOUT 5% OF ADVISORS/AGENTS UNDERSTAND HOW TO PROPERLY STRUCTURE LIFE INSURANCE FOR MAXIMUM BENEFIT. VISIT www.savvymoneymoves.com AND REQUEST INFORMATION. AS A FIDUCIARY I AM LEGALLY OBLIGATED TO PLACE MY CLIENTS NEEDS BEFORE ANY COMPANY OR MY OWN. ***
5. CHOOSE YOUR TEAM!
The financial industry has specialized areas of expertise. It is important to have those professionals needed to carry out your directives. Each member of your team must understand your unique goals, obstacles and opportunities.
Financial Strategist (I am also a Fiduciary- held to the highest financial responsibility)
Tax Specialist/Strategist
Accountant/CPA
Estate Planning Attorney
Business Consultant (Business Owners)
6. DETERMINE YOUR MONTHLY CASH FLOW
What is actually coming in? What is going out? What are you keeping? Where do the savings go? What is the return on savings? Since most of our activities are repeated monthly you naturally benefit from breaking your cash flow down by month. Once you do this, identify opportunities to be more efficient with your resources. Are you operating at a deficit or a surplus?
INCOME - LIFESTYLE = SAVINGS
7. WITH RETIREMENT PLANNING “INSPECT WHAT YOU EXPECT”
Remember it’s YOUR MONEY…YOUR RETIREMENT…YOUR MOVE. Retirement is no longer a “set-it-and-forget-it” deal. Create or continue contributing to an “after-tax”
nest egg. It’s important to know your choices for after-tax income for the future. Plans like 401(k)’s defer or postpone taxes being deducted from your account and postpones the tax calculation.
Also, even though your company may be matching your 401(k) contributions, you don’t have control of the funds. Remember the money in your 401(k) is at the mercy of the markets. Having a plan that you control is key to being able to actually visualize your future. http://www.cbsnews.com/videos/the-401k-fallout/
Consider the following features of a solid retirement plan:
* Safety
* Liquidity
* Use
* Control
* Tax-free income
8. CREATE AN EMERGENCY FUND
If push came to shove, you should be able to survive for at least 9 months at your current standard of living from the funds in your emergency account. Depending on how you earn your income, choose an actual amount or percentage of your pay monthly to automatically go into this fund. Separate this “emergency fund” account from your primary checking account and keep the accompanying check card out of your wallet.
9. INVEST IN YOURSELF
Growing both your income earning potential and your money will help you to meet your goals and finance your dreams. Aside from what you may know about how it contributes to running a business, your human capital is your ability to earn (or command) an income. It includes your skill set, expertise, education and ability to connect or interact with others. In financial terms, your human capital is the present value of all your future wages. It matters most for those still at the front end of their careers because of the value it will continue to provide over the next 20-40 years (i.e. funding your lifestyle, allowing you to save for current and future goals). Thus, increasing your human capital gives you the ability to increase your net worth.
Below are some considerations for investing in yourself:
Education
What skills or certifications could you acquire to enhance your value or diversify your experience? Are there conferences, events, or trainings that you could attend? When it comes to your education, subscribing to the lifelong learning model has never hurt anyone. Via what avenues can you continue to pursue knowledge? You don’t necessarily have to stay within the barriers of your company. Look to related industries and fields.
Industry Trends & Developments
What is the latest news in your company and industry? Are you aware of trends, revenue sources, and the overall market for your company or product? Do you know who your company’s competitors are? Stay current by reading industry publications and understanding imminent changes or advances in technology or product design that are contributing to the company bottom line. Be a resource.
Relationships
It’s not always about who you know, but when it comes to building your human capital, it could help to have a solid relationship with key members in your company or community. Who are you connected to professionally? Have you taken the time to invest in those relationships? Should you establish new ones? Professional relationships aren’t built overnight. They take time and commitment. If you’re looking to connect with someone, ask questions about them and practice active listening. If you’re seeking out input on a question, issue or project, be appreciative and respectful of the time and thought being contributed. Relationships can prove to be your most important currency.
10. CONSIDER YOUR LEGACY
Generations from now when your heirs think of you, or mention your name, how would you like them to reference you? For some individuals, leaving a financial foundation for their children, and their children’s children ranks right up there with breathing. As you are setting your goals consider what your legacy looks like. This is definitely an area that calls for an expert Adviser who understands your vision. Your legacy will tell the tale of how well you’ve incorporated the previous 9 steps.
GET STARTED TODAY!
This may seem like a lot to cover, but just get started today on one step. When it comes to tackling your finances, understanding your goals, cash flow and where your money is going are going to be a great place to start for getting clarity on your path to financial success.
Remember to break down each step along the way and visit www.savvymoneymoves.com for more tips, tools and resources! When you are ready schedule a 30 Minute FOCUS consultation so that I can guide you along the way!!
Make your next money move a Savvy Money Move!