Planning and saving for retirement is essential if you want to enjoy a stable and prosperous financial life into your later years. And, with more people living longer than ever before, you will most likely enjoy a much longer retirement than previous generations – a retirement in which you will not be working and generating an income. Hence, the need for retirement planning and the wisdom behind the advice that it is never too early to start planning for retirement.
Investing wisely and in line with your financial needs is an essential task for those who want to enjoy financial stability and prosperity at every stage of their wealth journey – essentially from the time you start earning and managing your own money and into your retirement.
Money will be an essential part of your daily life for your whole life, and as an adult, how you manage your money will have an impact on your security, health, and happiness. That being said, research shows that only 60% of home-owning adults take an active interest in managing their finances or even have a monthly budget.
There are a number of major life-changing events that necessitate a careful review of your finances and plan for prosperity. Unfortunately, divorce is one of them. Already a traumatic experience, the dissolution of a marriage also brings with it a range of financial implications, many of them quite devastating.
What would you do if you were given X amount of money? It’s a question you’ve probably been asked in casual conversation with friends at some point in your life. Hypothetically, it’s easy to say something like, “Well, I’d quit my job and head off on a yacht cruise around the world” or “I’d buy my family a holiday house in the Maldives”. But in reality, if you’re the beneficiary of a financial windfall, decided how to use the unanticipated sum isn’t that simple.
Making poor wealth and investment decisions in your earlier years will certainly set you back a bit, but mishandling money in retirement, when you’re no longer earning an income, can have far more devastating consequences. No one wants to face a financial crisis during a stage of life that’s meant to be relaxing and worry free, so it’s more important than ever to make wise wealth calls during your golden years.
It’s entirely normal to be a little apprehensive about planning for your financial future. But, fears and misconceptions about investment and other aspects of wealth management can lead to poor decision-making and really hinder your quest for financial freedom.
Most people are aware of the importance of budgeting, but actually getting started with responsible money management is an entirely different story. It’s difficult to know how much you should be spending and saving each month in order to ensure financial prosperity down the line, and trying to figure out the right split for you and your family can feel like an overwhelming task.
Emotional investing happens when we allow our hearts to rule our heads when it comes to managing our money and it’s rarely a good thing. Reacting to a sudden change in the markets, feeling stressed about your portfolio’s performance, or taking a risk because of a feeling can all derail the best-laid investment plans.
When it comes to managing your finances, you probably have some long-held beliefs about the best way to save and invest your wealth (as well as some ideas that are holding you back from making positive financial decisions). And some of these beliefs will centre around the role and purpose of a financial adviser.
You probably know that saving is an essential part of any stable wealth management plan, You need savings to help build up your finances for when you can’t work, provide a safety need in the case of an emergency, and help you to engage in wealth building activities like investment. A question that comes to mind when planning your savings strategy will probably be – how much should I be saving?
Financial abundance is the result of hard work, financial knowledge, and expert guidance. As part of investing in yourself and your wealth this year, it is also essential to cultivate a mindset of financial abundance – one geared to making the most of your wealth, today and into the future.
When it comes to the question of when you should start investing, you’ve probably heard the answer ‘right now!’ or ‘as soon as possible!’. And, while it is true that the sooner you start managing your finances correctly and investing, the more opportunity you are giving yourself for financial prosperity, that really is the most simple answer.
When planning a solid investment strategy, you’ve probably heard the term ‘diversification’ (along with other investment speak). Diversification refers to the simple principle of spreading your risk across various assets i.e. follow a “don’t put all your eggs in one basket” approach. While strategic investing does involve taking risks to allow for strong returns, it also involves reducing risk where possible in order to achieve your financial goals. And this is where diversification comes in.
Despite a good position and steady salary, you might find yourself in debt and feeling the financial and emotional stressors of this state. In addition, many people believe that being in debt is just part of life, that it’s a sign of adulthood, or simply an inevitable trap once you start earning and spending.