Ryan M. Kittredge is a partner and financial advisor with Carr Financial Group in Worcester and can be reached at ryan@carrfinancial.net.
Updated: March 2, 2020
10 Things
10 Things I know about ... Building your personal balance sheet
By Ryan M. Kittredge
10) Plan backward. Get detailed with your vision of what a successful future looks like. Create a financial strategy to serve as a guide, and then outline the steps in an action plan.
9) Flip traditional budgeting. Budgeting can be cumbersome. Instead, determine how much needs to be allocated toward savings and future goals, and pay yourself first.
8) Automate success. Invest consistently and systematically by setting up monthly EFT transfers, through good markets and bad. Increase these rates during poor market conditions to be opportunistic.
7) Negotiate your value. Whether you are an employee or self-employed, you need quantify your value to your employer or clients. Stay current on your value. Support it with data, and confidently communicate this value to ensure you remain fairly compensated.
6) Manage your brackets. Take advantage of tax deductions and credits. If you’re in a low-income year, consider using strategies such as Roth IRA conversions to take advantage of low rates. For high-income individuals, mitigate taxes with proper planning.
5) Conscious spending. Being conscious about your spending doesn’t mean being cheap. Spend generously on things you value, and cut costs actively on things you don’t.
4) Optimize your allocation. Invest in accordance with your goals, not based on Wall Street talking heads or tips from family and friends. Know your ability to assume risk, and don’t let fear of missing out cause you to take on more than you can handle.
3) Replace your income. Build passive income sources such as rental real estate, investment income, and business interests to eventually replace your earned income. Health and earnings ability can change, so build something to help replace income.
2) Get comfortable with “No.” Don’t get distracted by things not advancing you toward your goals. Living with intentionality requires you to protect your money and time.
1) The best investment. For the best ROI, irrespective of economic conditions, invest in yourself. Continuous learning, career development, and self-improvement will give you the best shot at reaching your goals. Seek out mentors who have already accomplished what you intend to and draw strategy and inspiration from them.
Ryan Kittredge is a partner and financial planner with Carr Financial Group in Worcester. He can be reached at ryan@carrfinancial.net.
WBJ Web Partners
Most Recent
Most Recent
0 Comments