Are You Financially Mature? Here's How to Tell
Just as there are several kinds of intelligence, there are many types of maturity. Apart from the obvious varieties, like physical, emotional, and intellectual, maturity also shows up as a component of our financial lives. Usually, people who know how to manage, save, and earn an adequate amount of money are said to be financially mature.
What are the details about this special kind of personal growth metric? Of course, being disciplined about setting money aside for a rainy day is one of the best-known aspects of the concept. But there are many more, including knowing how to invest, how to follow a realistic budget, how to save for retirement, and how to advance in a career. If you suspect that your financial maturity could use a boost, here are some of the details about each of the key components of the concept.
Investing Wisely and Profitably
It's one thing to plunk a bunch of cash into a stock fund and hope for the best. The wise path is to do research, see what you can afford, and begin your stock market journey with penny stocks issued by financially sound corporations. Many companies that issue pennies are high-growth startups that are set to break into the upper echelon of the trading universe. Another advantage of penny stocks is that with just a modest amount of seed funding, anyone can build a diverse portfolio. Consider that just $2,000 could purchase 100 shares of four different stocks at $5 apiece.
Creating a Budget and Living Within Its Bounds
Creating a realistic budget and abiding by its parameters is one of the core elements of adulthood. The trick for most working folks is coming up with common sense expense categories that match actual spending habits. Consider tracking all your spending for a full month before sitting down and building a monthly budget.
Improving Your Employment Status
Asking the boss for a raise is a time-honored rite of passage for most people who work for a living. Nowadays, because it's rare to remain at one company for more than five or ten years, the new rite is finding a job that is a step up from your last one, in terms of both pay and responsibility. One way to hone in on this skill is to begin with a solid resume that is updated and edited by a professional. If you truly want to get ahead in today's competitive economy, invest a hundred dollars or so to hire a professional resume writer. Improving your employment status is an ongoing battle, so think about updating your documents every couple of years to add new skills to the listing.
Saving for Retirement
Unless you're skilled in the art of retirement planning, projecting Social Security earnings, and tax law, turn to a licensed advisor or CPA to help you build a detailed map for financial stability in retirement. There's far more to the task than putting a fixed amount into an IRA or 401k every December. An expert can help you create a month-by-month retirement budget based on your needs and spending habits.