Although some might believe there is, and for a short time it may seem that way, there is no such thing as a sure thing when it comes to the best approach and strategy to maximize our personal financial planning! After many decades of being involved in a variety of related activities, from running businesses (of various sizes) to providing financial planning/advice to people from many walks of life and financial status, I have often, pondered what could make most of us maximize our chances of success in this important area. With that in mind, this article will briefly attempt to consider, examine, review, and discuss 5 keys to keep in mind when making these types of decisions and determining the best path for you.
one. Know your overall financial goals: What may be a great solution for others may not be the best course of action for you! Before making any big decisions, take a checkup, from the neck up, and determine your true financial, personal, overall, and financial goals, priorities, perceptions, and risks. Risk tolerance! What could make the biggest difference, to you and your family, etc., in terms of true needs, such as education, housing, retirement, reserves, peace of mind, and the feeling/perception of security?
two. Break down the objectives, short/immediate, intermediate and long term: It’s so much easier to plan ahead than when you have less time! What goals and needs need immediate attention, rather than medium-term and long-term? When planning, it is important to realize that addressing one area does not mean ignoring others, and how essential it is to perceive and conceive, create, develop and implement a quality, strategic and action plan, combined with discipline. and commitment, to stay – on – course!
3. Commit to recurring payment plans: One of the best ways to minimize risk and build wealth is to understand your financial means and have the discipline to commit to following your plans. Commit to and use a periodic payment plan, that is, pay the same amount, every month, in a diversified portfolio. For most people, the best approach is often to use a quality, balanced mutual fund, but it depends on a variety of factors which makes the most sense for you!
Four. To diversify: Don’t put all your eggs in one basket! How many times have you heard that advice, yet few adhere to it? Those who avoid trying to make a quick buck and who maintain the discipline and commitment to use a regular plan and a diversified portfolio are generally the best prepared!
5. Commitment; endurance; discipline: The combination of developing the necessary understanding/knowledge/base and maintaining the commitment and discipline to proceed, as well as the stamina, to stick to this solid, long-term strategy is generally the best approach. , and the most successful!
If you expect to suffer less from financial worries, prepare and plan effectively and manage your expectations realistically without being greedy! Are you up to this task?
