16 Things Financial Advisors Never Do With Their Money

16 Things Financial Advisors Never Do With Their Money — and You Shouldn’t Either

Jennifer Taylor  Sat, August 31, 2024   GOBankingRates

Financial advisors to help clients manage their money. As financial experts, they can offer advice on everything from investing to smart spending habits — but it can also be helpful to know what money moves they would never make themselves.

GOBankingRates spoke with a few financial advisors to find out what they would never do with their money. Here’s what they had to say.

Ignore It

“Ignoring your money doesn’t make problems go away, nor does it lead to wealth,” said Christopher D. Musick, CFP, CKA, founder and financial planner at Purpose Financial Planning.

To be intentional with his cash flow, he sets time aside to budget monthly.

“I plan for how much is coming in, and what’s going toward spending, saving, giving, taxes and debt,” he said.  “I also review my accounts regularly, including my investments.”

Use Consumer Debt

“I don’t take on debt to afford my lifestyle,” Musick said.

He said doing so isn’t sustainable.

“Car loans leave you in debt and paying interest on a depreciating asset,” he said. “Carrying credit card debt is even worse, as it often has higher interest rates and is typically used to fund immediate consumption, leaving you with nothing to show for that debt.”

He said consumer debt works against building wealth.

“It takes away from your net worth and constrains your future cash flow,” he said.

Invest My Emergency Fund

“I don’t want to worry about stock market volatility in the midst of an emergency,” Musick said. “My emergency fund is in a high-yield savings account (HYSA), but other options include things like CDs or money markets.”

He said he wants his emergency fund to be liquid, accessible and guaranteed to be there when he needs it.

Forget Taxes

“The last thing I want is to get surprised by a big tax bill in April,” Musick said.

Instead, he keeps a close watch on his earnings throughout the year to ensure he’s withholding enough taxes and determine if estimated taxes are necessary.

“I also look for tax-planning strategies that may help me lower what I owe in taxes now or in the future,” he said.

Keep It All for Myself

TO READ MORE:  https://news.yahoo.com/news/finance/news/16-things-financial-advisors-never-160030886.html