Last week I attended the XY Planning Network 2015 Conference in Charlotte. I had the opportunity to hear some fantastic presentations and came home energized with new ideas on the future of VB Wealth. This post is the first in follow up to my conference experience.
The first idea I want to share is on what I’m calling the Dynamic Money Relationship. This idea focuses on the key relationships between increasing income, cutting expenses, and increasing savings in order to build wealth and help enable us to achieve our financial goals.
Increasing income is a powerful way to compound not only our earnings, but our ability to save for the future and our financial goals. If you’ve been at your job for a few years, evaluate your salary and research what your peers are earning. Check out Salary.com for an easy way to start researching salaries in your area. Ask your boss about the requirements needed to receive a raise or promotion. Read one hour a day on a subject related to your field or enhancing your personal skills. Take that additional knowledge and use it in your job and at networking events.
Cutting expenses is also a very important part of this relationship. If you evaluate where you are financially and see that you are falling short of your goals, cutting non-essential expenses is the first step in looking at ways to improve your overall financial situation. This is also an area where we have a great deal of control over where our money is going.
The final piece is increasing your savings. This could be committing to increase your retirement contributions by 1% every year. Looking at a way to cut $100 of expenses out of your monthly budget. Investing in properly diversified investments and paying attention to the underlying fees and expenses in your investment holdings.
All three of these areas have a direct impact on your current and future spending. If you’re looking to evaluate your financial picture, feel free to contact me and we can discuss the benefits financial planning can bring to you.
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