WiserAdvisor – Blog

Main Menu

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
logo
Header Banner

WiserAdvisor – Blog

  • Main
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Investment Management
  • More
    • Personal Finance
    • Estate Planning
Financial Planning
Home›Financial Planning›5 Financial Planning Tips for a Happy and Prosperous Future

5 Financial Planning Tips for a Happy and Prosperous Future

By WiserAdvisor Insights
January 8, 2020
3005
0
Share:
Financial-Planning-Tips

Last Modified on January 17, 2020

It is never too late to start planning for a better and more prosperous financial future. Financial planning doesn’t always have to be complicated. In fact, handling finances efficiently is something that everyone should know how to do. Unfortunately, this is not the case with most Americans.

Table of Contents

  • Financial tips that can help secure your future with ease
    • 1. Know Your Goals
    • 2. Stick to a Set Budget
    • 3. Save Systematically
    • 4. Invest for Growth
    • 5. Set Up an Emergency Fund
  • To Sum it Up

Financial tips that can help secure your future with ease

1. Know Your Goals

You may have heard this, or similar advice, at some point in your life. However, you may not fully realize just how important knowing your goals is towards financial prosperity in the future. It is critical to decide what exactly you want to accomplish in your life. 

You need to ask yourself what you really want from life rather than just blindly amassing wealth. To put this into perspective, consider this – one person might dream of owning a huge mansion, a fast sports car and other expensive assets. To make this possible, this person might have to work very hard and take huge financial risks. On the other hand, a person who’s satisfied with a ‘place to call home’ and a normal, more affordable car need not necessarily have to work as hard or invest in risky ventures. 

Ultimately, you should clearly know what you want. This clarity of thought will enable you to handle your finances and plan your future more effectively.

2. Stick to a Set Budget

Once you have decided upon your financial goals, set a budget and stick to it. This is the first, healthy step towards a prosperous future. Sticking to a budget will help you live within your means. Moreover, it will also teach you the value of money.

Do bear in mind that your budget should be reasonable as well as achievable. It can be tempting to spend money on things that you don’t really need but rather desire. However, spend now on frivolity or save for later prosperity – that’s what you’ve got to decide upon. You surely know which one of these is a better option. 

Your budgeting goal should be achievable too. You might want to be excessively stingy with your budget in order to save more for the future. While this is not a bad thing in itself, ensure that your budget includes your normal housing, food, utility and other lifestyle-related costs. Otherwise, you will most likely punish yourself and not end up not sticking to the set budget.

3. Save Systematically

It’s always a good practice to start saving as early as possible – the sooner you start accumulating wealth, the more you’ll have of it in the long term. However, not only should you start saving regularly, but you should also put a system in place.

Start transferring a set amount of funds from each of your paychecks. These transfers should be carried out automatically by your bank the moment you receive a paycheck. In this way, you will not be tempted to spend money on an unnecessary whim that could have been disregarded otherwise. Once you start accumulating money, the power of compounding will take over – the interest you earn will be added to your principal amount and further interest will be paid on this amount. Hence, there will be a snowball effect in place and you will get fantastic returns on your savings automatically.

Also, do not set a saving goal that is too lofty. If you fail to meet it, it might dissuade you from saving altogether. Instead, it is wiser to start with a small amount and gradually increase it over the years. 

4. Invest for Growth

Almost all wealthy and prosperous individuals advocate that true financial planning is not just about amassing huge amounts of money. Rather, it is using the money that you have to open up even more cash flow streams.

Consider this: if you have a million dollars in a savings account that pays 1% interest, you will generate $10,000 a year. However, other investment options like stocks and bonds, real estate and entrepreneurship can help you generate much more money that can be used for further investments. Some options might be riskier than others. However, if you conduct the required legwork diligently, there are more chances that you’ll end up a winner rather than a loser.

So, be prepared to broaden your investment horizons and don’t be afraid to invest towards the increased growth of your wealth – that’s how you will end up with a prosperous future. 

5. Set Up an Emergency Fund

Losing your job, getting diseased or injured, loss due to natural disasters and theft are just some of the untoward incidents that can take place in anyone’s life. Such events can have a disastrous effect on your financial situation. This is why it is best to be prepared beforehand. 

Try to build an emergency fund so that you don’t have to delve into your savings or sell any of your assets in case of a financial emergency. This corpus need not be too much – the equivalent of about 6 months of expenses should arm you enough to take care of any unexpected financial burdens that come your way. Put this money into a money market account or short-term bond which pays high interest and can be accessed easily.

Remember, life is unpredictable. There are many surprises it throws your way and not all of them are always good. So, prepare for the worst financial crisis and if it becomes a reality, you’ll handle it easily and remain prosperous.

To Sum it Up

The resolution to improve your financial standing can be taken up at any time of the year – all you need to do is take the first step. If you follow the tips mentioned above and commit yourself towards sound financial planning, you will be well on your way towards a new and prosperous future.

If you need more tips and wholesome advice on financial planning, get in touch with top financial advisors today.

Tagsfinancial planningFinancial Planning tipsInvestingpersonal financeRetirement
Previous Article

All About Withdrawing Retirement Funds

Next Article

How Much Insurance Do You Need?

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0
WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • Expense-tracking
    Personal Finance

    The Ultimate Guide on Budgeting and Expense Tracking

    November 8, 2019
    By WiserAdvisor Insights
  • Personal--Finance
    Financial Planning

    Important Aspects of Personal Finance in A Changing Economy

    March 18, 2020
    By WiserAdvisor Insights
  • estate
    Estate Planning

    Things You Need to Know About Estate Planning in a Second Marriage

    October 10, 2019
    By WiserAdvisor Insights
  • Investment Books
    Financial Planning

    5 Must-Read books for Investing

    July 30, 2019
    By WiserAdvisor Insights
  • Financial Planning

    How to know If Index Annuities are right for you

    October 8, 2019
    By WiserAdvisor Insights
  • Federal-rate
    Uncategorized

    Federal Rate Cuts – How is your wallet going to be affected?

    October 4, 2019
    By WiserAdvisor Insights

You might be interested

  • Safety-First-Retirement
    Retirement Planning

    The Concept of Safety-First Retirement Planning

  • Asset-Based-Advisory
    Financial Advisor Guide

    Understanding Asset-Based Advisory Fees

  • Retirement-Plan-Benefits
    Retirement Planning

    Taxation of Retirement Plan Benefits

Don't miss out! Get our Helpful Financial Tips Newsletter

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Why investing for goals is the right way of investing

    Why Investing for goals is the right way of Investing?

    By WiserAdvisor Insights
    July 16, 2019
  • Portfolio diversification

    5 Dangers of Over-Diversifying your Portfolio

    By WiserAdvisor Insights
    July 26, 2019
  • Financial Planning for couple

    The Complete Guide on Financial Planning for Couples

    By WiserAdvisor Insights
    August 1, 2019

Categories

  • Business Finance (2)
  • Education Planning (29)
  • Estate Planning (20)
  • Financial Advisor (1)
  • Financial Advisor Guide (27)
  • Financial Planning (112)
  • Investment Management (54)
  • Personal Finance (9)
  • Portfolio Management (1)
  • Retirement (9)
  • Retirement Healthcare (1)
  • Retirement Planning (79)
  • Retirement Plans (1)
  • Uncategorized (2)

The blog articles on this website are provided for general educational and informational purposes only, and no content included is intended to be used as financial or legal advice. A professional financial advisor should be consulted prior to making any investment decisions. Each person's financial situation is unique, and your advisor would be able to provide you with the financial information and advice related to your financial situation.

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • Financial Planning for Entrepreneurs

    Financial Planning for Entrepreneurs

    By WiserAdvisor Insights
    July 1, 2022
  • Financial Planning for a Baby

    Financial Planning To Prepare For a New Child

    By WiserAdvisor Insights
    June 20, 2022
  • Lower Your Financial Advisor Fees

    How to Lower Your Financial Advisor Expenses

    By WiserAdvisor Insights
    June 13, 2022
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • Do's & Don't investment portfolio

    The Dos and Don’ts to Protect your Investment Portfolio in a Bear Market Amid The ...

    By WiserAdvisor Insights
    April 22, 2020

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 700
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2021 WiserAdvisor.com. All Rights Reserved.

Add WiserAdvisor - Blog to your Homescreen!

Add