Although, some,might, believe, there is, and, for a short – period, it may appear, to be so, 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 involvement, in a variety of related activities, from, running businesses (of various sizes), to providing financial planning/ advice, to individuals, from many walks – of – life, and financial status, I have often, pondered, what might make most of us, maximize the possibilities, for success, in this important area. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 keys, to consider, when making these types of decisions, and determining, the best path, for you.
1. 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 significant decisions, give yourself, a check – up, from the neck – up, and determine your true, personal, overall, financial goals, priorities, perceptions, and risk – tolerance! What might make the most difference, for 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?
2. Break goals – down, into short/ immediate, intermediate, and longer – term: It’s far easier, to plan, further, in advance, than when, you have less time! Which goals and needs, need immediate attention, as opposed to intermediate – term, and in the longer – run? When planning, it is important to realize, addressing one area, does not mean, ignoring others, and, how essential it is, to perceive and conceive of, create, develop, and implement, a quality, strategic and action plan, combined with the discipline and commitment, to stay – the – course!
3. Commit to periodic payment plans: One of the best ways, to minimize risk, and create wealth, is to understand your financial means, and, have the discipline, to commit to pursuing your plans! Committing to, and using, a periodic payment plan, which is, paying the same amount, every month, into a diversified portfolio. For most people, the best approach, is, often, using a quality, balanced, mutual fund, but, it depends, on a variety of factors, what makes the most sense, to you!
4. Diversify: Don’t put, all – your – eggs, into one basket! How many times, have you heard, that advice, yet, few adhere to it? Those, who avoid, trying to make the quick – buck, and, who maintain the discipline and commitment, to use a periodic plan, and use a diversified portfolio, are, generally, best – prepared!
5. Commitment; endurance; discipline: The combination of developing the necessary understanding/ knowledge/ basis, and maintaining the commitment, and discipline, to proceed, as well as the endurance, to stick, to this sound – strategy, for the longer – run, is generally, the best approach, and the most successful one!
If you hope to suffer, fewer, financial worries, prepare, and plan, effectively, and manage your expectations, realistically, without being greedy! Are you up to this task?