What if the secret is that you don't need to be rich to live wealthy?
Imagine living your ideal life and loving everyday.
A life where you can do what you love and have time to discover your real passion and take control of your time?
Where you don't have to trade your time for money anymore.
The simple, but powerful truth we hold on to, is that you only need 1FINANCIAL LIFE PLAN with 3 BE's.
Each chapter informs you as to what, where and how to do, what you need financially based on where you are in your life.
BE. SECURE your financial future.
Financial success, which is the 2nd BE cannot be built only on a foundation of hope - especially in those stormy moments when hope is hard to find.
The higher your financial aspirations, the deeper your financial foundation needs to be.
Here is essentials that you should have in place to be financially SECURE:
HAVE A SPENDING PLAN
Plan to spend all the money that comes into your bank account.
The smart plan is to allocate your money for a SECURE future. Here at WEALTHCAPITAL we follow the following guides
Tithe 10% (10th of your income) to your local church. If you don't attend a local church, then where would it make sense for you to tithe?
Save 10%. Initially this should be going to Your EMERGENCY FUND (we explain what this is below).
Allocate10% to your Debt Snow Ball plan. This will get rid of most of your pesky, bad debt in no time and free up CASH. Once you've paid off your short-term debt, switch this 10% to your investment account(s).
Review all your remaining expenses. This will allow you to shop around for great deals, from home wifi deals, insurance etc. You'll be surprised how much you can save for some concerted, short-term effort of shopping around.
START AN EMERGENCY, PRONTO!
Before you start paying off your short-term, consumer debt, using a Debt Snow Ball plan, start an emergency fund.
This is meant for emergencies. Not if you short on cash at the end of the month, for your weekly pedi. You have to decide what's the initial amount. What could you have in 2 or 3 months as a starting point? Maybe $200 (R3,500)? Once you hit that, then decide what's the next amount you want to grow this to?
Rule of thumbs guides that you want to have a minimum of 3 month's living expenses (that's why you need a Spending Plan, so you know what your living expenses are) in an Emergency Fund. You should over time, upgrade this to 6 month's living expenses.
Death and Taxes - don't let them catch you by SURPRISE!
"Risk you can't carry, you insure for"
The final, but critical part of being financially SECURE, and building a strong foundation, that will act as a safety net no matter what happens to you in your future, is covering the important life, and business risks.
This is when you should be speaking to your qualified, professional financial advisor.
They should help with an overarching FINANCIAL PLAN for where you and your family are, in your life stage. And then help you with figuring out what's the most affordable, and effective risk cover you need. This should definitely include some form of medical aid, or medical insurance, depending on what you can afford.
And please remember. This has been our biggest bugbear.
There is a difference between a financial advisor, who has your best interest at heart, and seeks to serve you and your family for the long-term. And a financial product sales person.
Insist and working with an advisor, and not a product sales person.
We believe the financial well-being of your family, and future depends on it.
If you're struggling to find a qualified, professional financial advisor, then feel free to schedule a 20 minute, call with one of our Financial Advisors & Coaches.
