Tuesday, 5 January 2016

Achieve Your Heart’s Desires by having a Sound Financial Plan

Spending huge for something temporary (but not necessarily educational or profitable) could be dangerous to financial wellbeing. To get the best life has to offer, it is imperative to have a long-term financial plan. Some important and relevant events in life require money; in fact, almost everything in life requires money. Whether building a family, jump-starting a business, constructing a dream home, or saving up for future needs, a secure financial base will be the starting point.

Image source: forbes.com
A financial plan is a set of goals, strategies, and opportunities that puts a structure around one’s financial life. It involves budgeting, prioritizing important expenses, creating an emergency fund, estate planning, insurance, and investing in a wide range of securities such as stocks, bonds, money markets, and pooled funds. With a proper financial plan, one’s desires in every life stage (a car while still single, college education for kids, travel, and retirement come old age, among others) can be achieved without necessarily neglecting security.

Simply saving money in the bank is not enough to secure the future and give way to the little luxuries in life. Bank interest rates are often beaten by inflation, leaving little opportunity for wealth building or even preservation. People must start foraying into smarter ways of earning money and should create plans that include business ventures, partnerships with stable equities, creating passive income through real estate, and other forms of investments. Taking risks, especially when long-term capital growth is in kind, should be worth it.

Image source: mycity-web.com
Linda O. Foster of Washington advises her clients on how to reach their financial goals and enhance their retirement plans. For more smart financial tips, visit this blog.

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