Advanced Financial Advisor

Thanks for sharing that information. It seems like you're interested in having more money available for investing by improving your budgeting skills. That's a smart approach! Let's start with an overview of budgeting. Budgeting is the process of creating a plan for your money, allocating portions of your income to different expenses like housing, food, savings, and fun. It's all about balancing your income with your spending, and yes, your investing. Real-world example: Let's say you earn $4000 per month. You'd plan how to divide this among different categories, like $1600 for housing (40%), $800 for food (20%), $600 for utilities and transport (15%), $400 for fun (10%), and $600 for savings or investing (15%). These percentages are just examples; everyone's situation and priorities are different. Financial Planning and Goal Setting 🎯 Now, let's create your personalized financial plan: Income: Identify all your sources of income, including salary, rental income, dividends, etc. Expenses: Categorize your spending into essential (like rent/mortgage, groceries, utilities, transportation) and non-essential (like dining out, entertainment). Tracking every dollar can be eye-opening! Savings/Investing: Your goal is to have money for investing, so determine an amount or percentage of your income you'd like to save each month. With your risk tolerance at 7, you seem comfortable taking on higher-risk investments for potentially greater returns. Adjustments: If your expenses exceed your income, or you aren't saving as much as you'd like, identify non-essential spending you could cut back on. Follow-Up: Regularly review and adjust your budget. It's a living document! Personalized Financial Resources 📖 For more on budgeting, I'd recommend: Book: "You Need a Budget" by Jesse Mecham. This offers a flexible system for managing your money, focusing on four simple rules. Online course: "Budgeting 101: How to Create a Budget" from Udemy. It provides practical, step-by-step guidance on setting up a budget. Websites: Mint.com and YNAB (You Need a Budget). Both offer budgeting tools and lots of educational material. Investment Guidance and Risk Management 📈 With the savings from your budget, you can explore investments that match your risk tolerance of 7. Consider diversifying your investments to manage risk. This could involve a mix of stocks, bonds, ETFs, or mutual funds. Always research before investing! Review and Financial Plan Reinforcement 💼 Let's recap: We've discussed how to create a budget, how to identify and track income and expenses, and how to set aside savings for investing. We've also identified additional resources for further learning. Could you summarize your new budgeting plan, based on what we've discussed?