Most people shy away from anything related to finance, budgeting, or money management because, well, it can be intimidating. I have a Bachelor’s Degree in Financial Planning, but I still learn new things about money management all the time! If you don’t have a degree in finance, you might know even less. Enter Farther, a platform dedicated to making your money work for you with ease. The best part about Farther Finance is that they offer accessible, personalized financial management.
You might have heard that I am getting married in 2021, and I can’t wait! Not only are Nick and I paying for our wedding, but we are also paying for our dream honeymoon in Bora Bora and (hopefully) buying a home this year. On top of that, I am paying my way through my second year of Grad School debt-free. Whew! This is going to be the year where I make some of the biggest purchases of my life. I’m 25 and self-employed and Nick earns an average income for his job. We don’t have a super high household income, but because we manage our money responsibly, we reach every financial goal we set and will continue this trend into the new year. I have a lot of saving to do in 2021, and I’m starting the new year feeling confident about my money thanks to Farther Finance!
Do you want to create a better financial future for yourself or your family? I’m very passionate about Farther’s services, so I’m beyond excited to partner with them on this post to share tips for reaching your financial goals. The Farther online platform combines technology with financial advising in a personalized way to make your money work for you. You don’t need a college degree in finance to be successful – you just need to utilize the resources available, like Farther! This is what Farther is all about:
“We aren’t just focused on your money, we are focused on your wealth. Wealth is a journey, and we are here to guide you. We start by optimizing the way your money moves between accounts so it doesn’t just sit in a low-or-no-yield deposit account gathering dust. You have goals and your money should too. With us, by your side, we will formulate a plan to get your money going Farther.”
Before you commit, you can take a demo tour on Farther’s website to learn all about the features they offer. What about fees? Farther is committed to transparency in its fee structure. There is a 0.8% annual management fee (the industry average is 1.02%). A $1 per month fee for personal accounts or $2 per month for IRA accounts (less than $5k) is also assessed. For such a small fee, you get major bang for your buck! The money you pay in fees gives you access to a professional financial advisor. He or she will help you manage your goals and can answer any questions you might have along the way. They make investment choices based on your goals to maximize your returns while maintaining an appropriate level of risk.
It’s time to tackle your money head-on and plan for your future with Farther! Are you ready?! Let’s get into 6 ways that you can finally take control of your finances in 2021:
[1] MAKE YOUR FINANCES A PRIORITY
If you have no idea what an IRA is, that’s okay. If budgeting isn’t your thing, that’s okay. If you’ve never tried your hand at investing in the stock market, that’s okay. Personal finance is just that – PERSONAL. There is no one-size-fits-all model for how to manage your wealth the “right” way! If you have no idea how to go about managing your finances, Farther is the perfect resource for you. Every part of Farther’s onboarding process is simple and transparent. They even have an app so you can stay connected with your finances when you’re on the go! The first step in taking control of your finances is to make it a priority.
[2] ALLOCATE SAVINGS TOWARD EACH GOAL
Next up is the fun part! Grab a pen and some paper and make a list of the different goals you are/want to/need to save for. Include them all – long term and short term. Just getting everything out on paper is the best way to see where you’re at. If you and your spouse or significant other have joint finances, be sure to make this list together!
Now that you have your list, it’s time to figure out how much you need to save for each goal. For each category, write your best estimate. Goals like growing a retirement fund are hard to put an actual dollar amount on, but goals like a vacation should be pretty specific. My favorite tool Farther offers is goal-based accounts. This feature allows you to create an account for each goal (the ones you wrote down) and set a target date and dollar amount. Your advisor then chooses the best investments to take to help you meet your goals. Reaching your financial goals is now easier than ever!
[3] KNOW WHEN TO ASK FOR HELP
I went to college for finance, and I am not afraid to admit that I do not know everything about the subject. My grandpa always says, “You don’t have to know everything, you just have to be smart enough to ask an expert for help.” If you’re reading this post, I’m guessing you might be feeling a little lost when it comes to your money. Once you accept that you need help in this area of your life, you can fully take advantage of everything Farther has to offer. Remember, with Farther you have an actual human financial advisor available to answer your questions and help you develop a plan. There is nowhere else you can gain access to a financial advisor at such a low cost (only the account fees)!
[4] IF YOU’RE NOT ALREADY, IT’S TIME TO START INVESTING
Investing can be daunting, but it’s necessary if you want to reach your financial goals. Not all investments have to be in risky stocks – there are safer ways to invest and grow your money. Do not, I repeat, do NOT continue to put off investing because you “don’t have enough money”. Newsflash – it could be a long time before you feel like you have “extra” money to invest. Those missed years you aren’t investing will end up costing you more than you can imagine.
Did you know that the average cost of living in the United States increases by about 3% every year? That means if you’re stashing your savings under your mattress, your money is actually losing value. The best way to combat that loss and make your money work for you is through investing! Farther makes the process easy enough that anyone can become an investor.
[5] DON’T DEPRIVE YOURSELF
I’m all for saving as much as you can and making smart money choices. I have been contributing to a Roth IRA since I was 18 and paid my way through college with cold hard cash. But guess what? Nick and I also take a tropical vacation every year and I treat myself to a latte at least once a week. And that’s okay! Traditional financial advice says to stop buying unnecessary things like lattes completely. It would tell you how much more money you would have if you invested that latte money into your future. Yes, I’ve run the numbers, and I still continue to indulge every week! Coffee is my favorite way to treat myself, and as ridiculous as it sounds, sipping on a latte brings me joy. I have found ways to cut back on my once-daily habit, like making coffee at home or getting a cheaper iced coffee, but I don’t completely deprive myself. Isn’t your happiness worth something?! Like everything in life, managing your finances is all about balance.
[6] YOUR BIGGEST ADVANTAGE IS TIME
I am turning 25 next week and, while I feel really old, most people would still consider me young. The biggest advantage we millennials have when it comes to money is time. When I turned 18 (which feels like yesterday), I opened my first Roth IRA. Over the last seven years, I have contributed $30 to it every month. I don’t even miss the money that is automatically pulled from my bank account, but it is already adding up in a big way. In those seven years, that account has already earned over $400 in interest and dividends. With at least 30 years to go until retirement, think of how much bigger that number is going to grow! If I had started my Roth IRA today, at 25, it would be worth significantly less in 30 years. The power of compounding interest is a beautiful thing. Your money literally grows itself, and you don’t have to lift a finger! Farther’s website has a great example of the power of compounding interest that you can check out HERE if you are a more visual person. The moral of the story is that the earlier you start saving and investing, the more time your money has to grow. Today is the perfect day to get started if you haven’t already!
You can dream all you want, but you will never meet your financial goals if you don’t take action. It’s not going to happen overnight, but it is possible to feel confident in where you stand with your finances. Farther has the tools and advisors you need to guide you through the planning process and set yourself up for long-term success. It turns out, wealth management and personal finance are not as scary as you think, especially when you have Farther on your side! Be sure to check out the platform HERE and take control of your money today.
Sending these tips to my college kids! Thanks!