We all have goals and aspirations, from grand plans for retirement to milestones you want to achieve along the way. However, many of these dreams come with a price tag. To make them a reality, it’s crucial to get your finances in order, and ensure that you have enough money to fulfil your goals later in life. Have you got a personal financial plan that paves the path to financial independence? If not, read on to discover why there’s never been a better time to start planning.
Establishing Your Goals
The key to financial freedom is pinpointing what you want to achieve and when. To this end, it’s important to think carefully about your priorities and personal goals. Perhaps you want the option to retire at 60, or you want to save enough to fund your children through university when they turn 18. If you have a family, you probably want to do both! Only by identifying your goals can you begin to plan for the future.
Set a Budget and Timeframe Establishing what you want to achieve is a good start, but to accurately plan ahead you must figure out how much you need to save, and how long you have to do so. How much do you realistically need to put your children through education, including course fees, maintenance costs, trips and materials? Or, if you’re saving for later in life, how much do you think you need per month to live the lifestyle you want and expect?
Of course, if you have a partner, you may both contribute to these funds. However, it’s a good idea to work out a budget and timeframe. If you already have savings, investments, a trust fund or pension in place, calculate the shortfall to find out how much you need to generate over the next few years or decades to achieve your goals.
Outline a Financial Plan Now the flesh and bones of your personal financial plan can really come together. Once you have a clear figure in your head, the planning stages are easy. If you’ve got a large amount to raise in a short space of time, you may be drawn towards higher risk investments with a higher yield. However, the earlier you start planning, the less risk you can afford to take. Property investment is an attractive option for those looking to make their money work harder, offering a secure investment option with significant long-term growth potential. With countless investment opportunities in the UK and overseas, a property investment company can help you develop a portfolio with terms and returns that match your financial goals.
If you haven’t got a personal financial plan in place yet, or your current one is out of touch, follow these tips to lay the foundations for financial freedom. Establish your goals, when you want to achieve them, and how much you need to fulfil them, and you’ll find narrowing down your investment options simple.