Five Keys to Financial Planning
Posted by National Wealth Partners, LLC on September 11th, 2019
Financial planning can give you an enormously exciting opportunity to find financial freedom later in life. It allows you to do what you want, go where you want, and be a healthy consumer without limitation. Maybe you want to surprise your grandchild with a car when he turns sixteen, or take your family on a Caribbean cruise, or purchase a vacation home, or maybe even set up college savings account for young children. Whatever the case may be, the options are endless of you are financially stable and work hard to responsibly save.
There are five keys to financial planning that can be revisited at any age and that will help to acquire the freedom to spend later. They are simple, straightforward, but extremely meaningful and powerful. If implemented into your daily financial decisions, they can slowly reinvent your journey to financial stability. Your goal should be to consider your planning goals and then make the decisions early in life that will help position you to reach them. It is not always easy, but with just a little discipline and thought, they are very much in play. These five important steps include:
1.Know your net worth
Your net worth is the calculation of your assets minus your current liabilities. Assets are anything you own like a car, a house, your stocks, bonds, or any other investment. Liabilities are what you own like your mortgage, a car loan/lease, or debt like student loans or credit cards.
2. Know how you’re doing
Consider questions like: How am I doing related to my peers? My age group? My income? Most times, a financial professional can help to give you an honest assessment of your current situation.
3. Keep on target to meet your goal
First, you have to know what your goals are. Next, take the time to analyze and evaluate those goals as you move in their general (and eventually more specific) direction.
4. Have aconsultant or coach to help you
There are an enormous amount of resources and the best financial advising companies with specialized expertise that can help track your journey and measure it as you go. Consider meeting with a few of them to determine who’d be the right fit for you.
5. Sleep better knowing you’re financially secure
A financial consultant supporting you can help to make the journey significantly less stressful, and will help position you to sleep much better at night.
In other words, ask yourself the following:
•What do I want to do?
•Where do I want to go?
•With whom do I want to make this journey?
The answers to these questions help point people towards the experience that are in line with their goals and with their budgets. Alignment is a crucial concept to recognize and understand. Magic can happen when our financial decisions align with our financial limitations. It is not easy. But it can sure make a big difference.
Final Thoughts
Based on the information provided, you may already be asking yourself, “When do I need a plan for my financial life?” Regardless of your age, the answer to that question is NOW. If you found this article useful and are now looking forthe best financial advisors, make sure you visit the website of top wealth management companies to make an informed decision.
