Planning is not only good for your financial future but will give you much needed support in the present time. We can forget to live in the moment or spend too much time worrying the next big spend. Some suffer a general anxiety towards money, feeling powerless to change their mindset or their situation.
Being empowered can come from many things in life, however financial empowerment is the feeling of being in control and having a financial plan, being protected from the unexpected and prepared for life’s spontaneous moments.
It’s common to lose track of our purpose; we forget about the legacy we’ve always wanted to leave as we deal with the challenges of everyday life. However, financial empowerment means bringing these to the forefront of our minds and aligning tangible things requiring money to achieve with a plan.
We feel empowered when we know that we are on a trajectory towards obtaining our goals and fulfilling our purpose. Here are some ways that you can become empowered by your finances:
Be purposeful.
Where are you now and where do you want to be? What really matters to you most in this life? What are your goals? What are the ways you can move forward? And what is the best way right now?
Planning.
Look at your financial requirements from short to long term, in the light of the goals you have identified. How much wealth will you need in order to achieve your goals? This will help you to manage your assets to provide you a comfortable retirement, even if you live to be 100 or more. How powerful is having the confidence that you have a planned income that you cannot out live?
Advice.
Financial products and investments can be complex and numerous. Nearly always, simple is better. Simple is cheaper. Simple is less risky. And simple is all we need. Even though the financial product manufacturers sometimes like to invent products for problems that don’t exist! How valuable would a second perspective be to work out whether you even need financial products and, if you do, to sort out the wheat from the chaff so your planning hums like a finely tuned engine?
Investment.
This is a core component to financial planning, setting aside some time to identify goals and calculating how much you want to save, invest or withdraw for that goal. Without a plan, our investment portfolio is rudderless. With a plan we act on purpose, not react to fads.
Progress.
Follow the path you have chosen. Make adjustments where necessary to keep your goals in sight, continuing in control of your money, rather than allowing it to control you. By having an effective way to measure your progress you can set a different sail when the winds change so you still arrive at your destination.
With the right advice and help you can embrace the future with joyful expectation and be financially prepared for any challenges along the way.
Ultimately, it’s not always about being rich, it’s about having funds to fall back on when life takes an unexpected turn; to have the freedom to set and achieve lifetime goals no matter what happens in the economy, the markets or the world.
We should embrace the future but be financially prepared for what may be waiting around the corner. That is when you’re in control of your finances, and financially empowered.
A man may plant a tree for a number of reasons. Perhaps he likes trees. Perhaps he wants shelter. Or perhaps he knows that someday he may need the firewood – Joanne Harris, Runemarks.
Andrew Stinchcomb
Lead Navigator
Certified Financial Planner™ professional
Chartered Wealth Manager™
Investors should remember that the value of investments, and the income from them, can go down as well as up. This update has been produced for information purposes only and isn’t intended to constitute financial advice; investments referred to may not be suitable for everyone.
