Revolving debt, mostly credit cards, has declined 19% since 2007. (Photo: Jay Directo, AFP/Getty Images)
Greensboro, N.C.--In order to build more wealth this year or in the near future, experts say, don't neglect the risk management strategy.
This strategy may help you retain the wealth you make. Risk management should be part of your overall financial picture.
The first thing to do is consider all of your core financial responsibilities such as, mortgage or rent payments, electricity bills, etc. Look into any methods that can help reduce some of those expenses.
There are two types of debt: good and bad debt.
If it brings income, it is "good" debt. Credit cards are considered "bad" debts. It is still essential to pay down all balances and restrict any new debts in order to increase your FICO score.
Another method in starting your financial plan is to keep an eye on your income, make sure your wealth has some "direction". Accumulating assets and leaving it idle may put you at risk of taxes, inflation, and legal risk.
Also consider speaking with a financial professional to educate you on building wealth and give guidance.
Advice Provided by: Matt K. Logan CFP®. He spoke with WFMY News 2's Faith Abubey and Ed Matthews on the Sunday Good Morning Show. Click on the video to see the interview.
Matt Logan: www.mattloganinc.com
Matt Logan with Matt Logan Inc. and Summit Brokerage
Matt Logan, Financial Expert