A Wealth Advisor Shares His Best Piece of Financial Advice
Considering my egregious lack of financial savvy, my eyes and ears are always perked for any bits of advice designed to make money management more, well, manageable. Which is why when I saw a recent headline about tips from a wealth advisor, I was intrigued. In an op-ed published on Business Insider, Jonathon DeYoe, a well-known financial advisor in the San Francisco area, divulged his top pieces of financial advice, acquired throughout over 20 years in the industry.
Partially influenced by the "unprecedented explosion of wealth creation ushered in by the tech industry," DeYoe has witnessed some of the most drastic financial transformations in the blink of an eye—both good and bad. Which brings me to one of his most salient tips: Save at least 10% of every dime you make. "Once you got your first 'real' job and started earning more, you probably started spending more, too. If that trend continues every time you get a promotion or better job, you will never get ahead," writes DeYoe. "At some point, you must make a conscious decision to save a specific portion of your income every single month. These savings will form the foundation upon which your entire financial life can be built."
DeYoe recommends saving 10% of your gross salary every paycheck, increasing that savings by 1% year-over-year until you're saving around 20% of your income. The ultimate goal is to build an emergency fund containing six months to two years' worth of living expenses, and to "save even more in a taxable investment account and/or pay down your low interest debts."
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