Financial success doesn’t just happen, you have to MAKE it happen.
Financial security won’t happen by accident, and it won’t happen overnight. Just as businesses have quarterly goals, annual revenue targets, and five-year business plans, you need to approach your life with a long-term strategy made up of a series of short-term actions and goals.
Success rarely happens at random.
You need to have a plan.
Here are a few tips you can use to build a long-term plan to ensure financial success:
- Track your cash flow so you know how much you can afford to spend and save.
Having a positive cash flow means that more money is coming into your bank account than going out. It’s just as important as profit when it comes to determining your current and future goals. Fast growing businesses / individuals tend to require more cash to buy stock, hire employees, etc., so it’s vital to keep an eye on cash and cash flow. - You have to work on building your bank account up to prepare for major purchases like a house or car with the most favorable terms.
We save because we can’t predict the future. Consistently building your bank account can help you become financially secure and provide a safety net in case of an emergency. Saving money is one of the essential aspects of building wealth and having a secure financial future. Wealthy people have a great habit of saving money and controlling their expenses to grow their wealth. - You have to save for your retirement over many years, so you can live comfortably and not worry about outliving your money when you want to stop working.
Retirement savings is a top priority for many savers. Saving now for retirement will ensure that you have enough money to enjoy a comfortable standard of living when you stop working or reduce the number of hours you work. Saving for retirement early allows for more financial freedom, reduced income taxes, and higher likelihood of investment growth. Most people retire in their 60s, meaning they likely have 20 to 30 more years with no working income. During retirement, most people expect to live off of their Social Security – which is not ideal. - You have to get multiple quotes/price shop when doing a home improvement job or buying a large appliance to get a good deal (doesn’t have to be the best deal)
You can learn it the hard way or the easy way: getting multiple quotes for home projects will save you money and leave you happier with the results. It pays to get a second, third, and fourth opinion, and doing so can save you hundreds to thousands of dollars in some cases. Multiple estimates will give you a good idea of the average price range. (Be wary of quotes that are super high or super low; any outliers should be looked at cautiously.) - You have to teach your kids the value of a dollar so they develop good habits and a strong work ethic.
Talking to your kids about money at an early age can help them understand the value of the dollar, how to save for long-term goals and how to spend responsibly. Teaching children about finances can build financial literacy and give them a stronger ability to manage their finances later in life.
Overall, being able to create real wealth requires us to be diligent in our financial goals and plans. Nothing is achieved without having a well thought out plan that guides us to our end goal. Taking small steps now, like managing our cash flow and starting to set money aside for retirement, can make massive differences in the later years of our lives. Making financial security a priority in your life now can lead to a much more comfortable and relaxing life later on down the road.
