Do you have kids? Do you have plans for your kids to go to college one day? Have you looked at how much college is going to cost you for just one kid? College is a big investment, but it is a good one. If you begin planning for this huge expense when your kids are young, you won't take much of a hit when the day comes that your teen packs his or her bags and heads off to start a new life at school. This blog will provide you with several ideas and tips that can help you find ways to plan for your kids' college tuition.
Have you received a windfall of sudden wealth? Whether it came from an inheritance, the lottery, or selling your life-changing invention, a sudden influx of cash is both exciting and challenging.
Because many people in your position eventually lose that wealth to mismanagement, you want to steer clear of serious mistakes. How can you do that? One answer is to manage your wealth like a business. Here are three ways to do just that and why they work.
1. Assemble a Team of Pros
Businesses hire professionals to do various jobs in the organization and then rely on their experience. You can and should do the same with money management. Your team of pros will likely be outsourced rather than employed, of course. But they should include an attorney, an accountant, a wealth manager, and a tax planner.
Once you research and vet qualified individuals or services, listen to their advice and use it to make smart money moves. Ultimately you are the CEO of your money but keep in mind that great CEOs use experienced managers to help make daily decisions.
2. Make a Budget
Budgeting isn't something most people enjoy, but it keeps a business operating for many years. Think of your wealth management budgeting more like a financial spending plan. Include major categories of fixed expenses, monthly variable expenses, and irregular maintenance and upkeep. If you want to buy a large asset, like a new home, create a budget for this project and keep it within that budget.
Budgeting is also done with a long-term eye. Planning for the future helps you avoid traps that others fall into, such as overindulging in impulse purchases. A car enthusiast might budget to buy one new car per year — making them less inclined to go out and buy ten on a whim right now.
3. Create a Steady Income
Most businesses get money to start operations, but they need to earn income on a regular basis to stay in business. One of the biggest errors that most windfall recipients make that leads to losing their money is failing to replace money spent with new income. Eventually, it's likely to disappear — faster as it dwindles, too.
Work with your team to find income opportunities that work for you. You should seek good returns on investments in the traditional stocks and bonds markets. You might choose to directly invest in local businesses or one of your own. You might include physical real estate investments. And you should invest in yourself with education and personal business opportunities.
Many other ways exist to treat your newfound wealth like an operational business. Start by consulting with a wealth management service in your area. They will work with you to make your money-making enterprise more successful each year.
Share15 January 2021
