4 Portland finance areas you need to understand
Portland finance experts can all agree on two truths:
Financial success requires adaptability
A financial strategy that works right now might not work tomorrow.
Financial growth requires a personal touch
Someone else’s financial success may not work for you.
Many people ask what an adaptable, personal financial strategy should look like. Here are the four areas of financial planning every Portland resident should know.
Portland finance area #1: Income
Income is the bedrock of financial planning. In fact, without any sort of inflow — whether from a job, structured settlement, investment, benefactor or other source — your financial future is likely very bleak.
Financial factors for income:
- How much income do you generate?
- How secure are your sources of income?
- How frequently do you receive your income?
With your income calculated, you must consider how to spend your money.
Portland finance area #2: Expenses
Keeping track of your bills is essential to your financial life plan. Most expenses are easy to calculate based on expected costs each month. It is also smart to plan for unexpected expenses and to set financial goals.
Financial factors for expenses:
- How much do you spend on necessary bills, including rent, food, utilities, phone, internet access for work/school and hygiene?
- Do you spend money on unnecessary items or services?
- How would you handle a large, unexpected cost?
After calculating your expected cash flow (income minus expenses), you can consider savings.
Portland finance area #3: Savings
Anything left after necessary expenses can be spent on fun things. You can also save that money for when you really need it.
Financial factors for savings:
- How much risk are you willing to assume to meet your financial goals?
- Are you saving for college, retirement, a house or other large expense?
One more area exists after cash flow and savings, an important area to consider on the path to your financial goals.
Portland finance area #4: Interest
Any debt you are paying off is probably accruing interest at this very moment. It is best to avoid credit and minimize your interest payments as best you can.
Financial factors for interest:
- How much debt do you owe to credit cards, loans or outstanding bills?
- What interest rates are used to calculate your payments?
- How quickly could you pay off your debts if interest weren’t a factor?
Debt consolidation or refinancing options are available, as is bankruptcy. However, these options may cause more problems than they solve.
Contact one of the Portland finance experts at Titus Financial to examine these four areas and shape adaptable, personal goals for your life!