Ilia Zavialov is a recognized leader in financial planning and portfolio management. It goes without saying that the core of his client’s success is his ability to create diverse strategies. Yet, his clients’ desire and ability to budget and save are at the heart of this. Without these core attributes, creating any type of financial success over the long term is very hard. For those looking to build wealth, though, it starts with budgeting and saving to create financial stability.
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Start with the Basics
While quite a bit goes into a long-term strategic plan, the basics are where you simply need to start, believes Ilia Zavialov. The core here is ensuring a person has a plan to build wealth. There are several steps to this.
Knowing what you are spending is the first rule. Unfortunately, it is also one of the easiest rules to overlook, thanks to digital payments and credit cards. Many people need to learn how much they spend daily, which means they tend to spend beyond their means.
Also important is establishing a working budget. This should be a cash-based budget, which means it should be based on just the amount of money that is coming into the house each month, not on any use of credit to cover any type of debt each month. By doing this, it is possible to recognize how much is being spent over and above the allotted amount.
Create a Plan for Savings
To build financial stability, consumers must have a plan that addresses any shortfalls. There are several ways to do this.
Start with building that budget and then monitor for any gaps month to month. Only planning to spend $500 on groceries when it costs $700 each month creates a gap. Find and adjust the budget or lower spending to get within the goal.
Then, automate savings. Savings should not be a secondary decision when there is money left over for the month. Rather, it should be a component of the budget with good reliability. That means that, just like paying a mortgage payment, consumers need to pay themselves in the form of a savings account.
Next, use savings to build wealth, not tap into it whenever there is a need to purchase something. Treating savings accounts as true savings accounts makes it possible to get more out of them and build on compound interest, one of the most powerful financial tools available today. Compounding interest allows earnings on investments to grow on top of each other, building wealth faster.
Working with a Professional
Another way to facilitate success with budgeting and saving is to work with a financial advisor. Ilia Zavialov shares that this is not something that can only be done by those who are wealthy and who are already saving money – they are already making the right decisions. Instead, here, it is critical to consider investing in these professionals early on to create a wealth-building plan. The sooner this happens, the easier it is to build wealth at a younger point in life.
Ilia Zavialov also notes the importance of making wise financial decisions for purchases. When a person is not sure if they should make an investment, they can contact their advisor for guidance.
Building Wealth Depends on Consistency
A budget and a routine savings plan can help anyone to build wealth over time. The key here is to ensure that this is done with careful oversight by a professional, shares Ilia Zavialov. That helps to minimize risks of missing opportunities that could improve financial stability and long-term outcome.