Here are 6 tips for sustainable portfolio growth:
1. Be Prudent.
Certainly a statement easier said than done but certainly the foundation of a sound financial future. It doesn’t take the best financial planner in Orange County to tell you that money earned will always outweigh money spent in the long term. Infinite investment without adequate returns on your investment is just another term for debt. Find out how to start a diverse portfolio with Orange County Finance.
2. Drop the Debt
The sooner you can pay off your debt, the closer you are to genuine financial freedom. Debt comes in many shapes and sizes and at Orange County Finance, we understand that life happens. Houses are purchased and sometimes refinanced. Colleges demand higher and higher tuition rates. Bills get tight and credit cards start to seem more and more appealing with low entry interest rates. Regardless of your debt situation, we can help you escape the stress of owing money and give you the tools to grow your money.
3. Practice Patience
If you happen to come by a substantial windfall investment in the development of your portfolio, it’s important not to run to the nearest Gulfstream outlet right away. Temper the way you live your life after a substantial increase in wealth to maintain the financial health of your nest egg as well as your personal satisfaction with life. Money, like happiness tends to ebb and flow more drastically after a spike. By patiently investing your earnings and slowly making lifestyle changes, your short term success can translate to long term happiness.
4. Price your Opportunities
A small to moderately expensive purchase today can have a tremendous impact down the road when you consider the opportunity cost of compound interest. Instead of spending $900 today on that new set of golf clubs, consider that you are spending several thousand dollars from you bank account when you’re 68. The opportunities that lie in every dollar of your bank account are endless. What you choose to do with them can mean a few extra yards down the fairway, or a golf getaway down the road.
5. Don’t Fear Spending
Is a jet ski an essential purchase this month? Probably not. However an exclusive seminar that may dramatically improve the way you run your business might be worth the price. Spending strategically is important to financial development. The adage that you can’t make money without spending money is true when you’re strategically investing in those fields that will grow to produce returns in your future. Remember to enjoy road to prosperity as well. An occasional splurge will not spoil your retirement entirely. Spending wisely is not the same thing as complete austerity.
6. Act Today
There will never be a perfect time to start saving. Today is the very best day to start building a successful future because yesterday is no longer an option. A financial planner can help you on the way to your goals. Contact Us today to find out what Orange County Financial Planners can do for your future.