Personal finance basics: wealth management
Personal finance is a collection of actions that you take to grow your wealth or to reach a certain financial goal. Once you have started to accumulate wealth or reached your goal there is a new facet of personal finance that you have to consider, wealth management. There are different levels of wealth that require different levels of management. Some of this may come from you or an outside entity.
There is a level of wealth that is based on long term habits such as budgeting and living below your means. In this case many times for you to continue to grow your wealth you still need to maintain these habits. Generally speaking even if you were to earn significantly more money you still would need to live with-in your means to avoid getting into serious debt. At this level you may be financially independent possibly even retired early. Once you reach significantly higher levels of wealth where you investments outpace your spending you reach a different tier of wealth management with ways to shelter your assets and earning as well as concerns of how to pass on wealth to children or family.
These are all far flung situations. If we want to simplify wealth management the goal of this service is to help you manage the wealth you have, often times this is built into financial advising of helping you reach your goal. Many people like to build a team of…