Financial planning at its smallest denominator is essentially what you'd like to have and how you plan to get it. That may be oversimplifying things just a bit, but sometimes when you look at things stripped away of all of their jargon, it's a lot easier to understand it. So, in order to begin planning your financial future, make a list of everything you'd like to have. Whether it's the freedom to take a vacation whenever the fancy strikes you or the ability to retire without having to worry about eating out of garbage cans, write it down.
Now, let's work on how you plan to get there. If you've already got a great job, you're well on your way. It's easy to think that making X amount of dollars per year is going to make you rich, but when the realities of life start to creep in, it's all too easy to become uncertain. There are going to be unexpected expenses for the rest of your life from orthodontia to cars that break down. There are going to be hurdles that will trip you up on your way to financial success.
You've got to accept this fact and realize that your job on its own, unless it is incredibly lucrative, is not going to be enough to secure your financial future. Your 401K cannot bear the burden of your future by itself. It's going to need a little help. Somewhere along the line, you're going to have to take risks and start investing. This can be pretty scary at first. All of us are familiar with the horror stories of people who took a gamble and lost everything.
However, this doesn't have to be your story. If you want to start planning for your future, you're going to have to take some risks. It's being able to tell which risks are the ones worth taking and the ways that you finance these risks that make the difference. Many people are under the impression that in order to invest in something, they've got to have money put aside. In most cases, this means waiting until you're well established to start making plans for your future. This is all well and good, but chances are, by the time you're there, you're not going to have much time left before you retirement.
Before waiting until you have a lot of money put aside, it's a good idea to consider leveraging debt to start generating income right now. You'll have a lot more time to start putting money away if you start now rather than waiting to get flush years down the road. If you're already at the point where retirement is looming, debt leverage may be your first alternative.
By using smart debt management practices, you can leverage it to start making money. Whether it's investing in stocks that you couldn't afford on your own, or taking a chance on a new company, debt is a very powerful tool
Photo Credits: 1
Originally posted 2008-11-29 21:31:58. Republished by Blog Post Promoter
Related Posts -
Planning For Retirement Late in Life Not all of us have had the luxury of spending the last 20 years to secure our financial future. Most of the time, through no fault of our own, putting aside money for retirement takes a back seat to handling emergencies or schooling for our kids, or simply the daily...... -
How to Negotiate with Credit Card Companies to Reduce Your Debt Today's article is a guest post by Andrew Wang... With consumers facing tough times in the wake of the financial crisis of 2008, it's a good opportunity to discuss the possibility of getting your credit card debt sorted. Most people assume credit card companies care only about the profits they...... -
Does Your Financial Future Look Gloomy? While no one can look into a crystal ball and determine where they will be financially in twenty, thirty or forty years, there are some early warning signs that may indicate that the future might be a bit gloomy. The key to successfully preparing for your future is to avoid...... -
Review of the Richest Man in Babylon This is probably one of the most commonly used books by those who are looking to create wealth. It first came onto the scene in 1926, and shot to fame during the Great Depression as the desperate populace looked for a way out of poverty. While this book does raise...... -
Choosing the Right Types of Investments If you have a regular, traditional type of pension plan, then your employer is responsible for making all of your investment decisions in your place. With most other types of retirement plans that are out there, however, you are the one that is in the driver's seat. Some people believe......
Related Websites - Book Review: The You On a Diet Diet "You: On a Diet" appeared on Oprah Winfrey's show and then immediately exploded, primarily because it offers a fun and light hearted approach to losing weight and getting healthy. The "You: On a Diet" diet uses metaphors, comics, images and other fun icons as a way to explain how the......
-
4 Tips for Starting Off a Coin Collection For many, the hardest part of a hobby is actually getting that hobby started. This couldn’t be more true than it is for those who are looking to start a coin collection. With thousands of different coins available to collect, it can be hard to understand where to start or...... -
Things to Avoid When Collecting Rare Coins and Old Money The world of coin collecting revolves around many types of currency, including rare coins and old money. These types of coins and currency are the hardest to find, and are the most sought after. People will make brainless decisions about these types of currency simply because they want to be...... -
How to Get More from Collecting Chinese Paper Money Those who enjoy collecting currency are delighted to start collecting something like Chinese paper money. This is because of how rare some of the item can be as well as the history regarding the currency itself. There are many people looking to collect this kind of currency so that they...... -
5 Ways on How To Start a Fitness Plan and Keep It If you are ready to make that commitment towards getting healthy and losing weight, you'll need to come up with a fitness plan that works for you. While it's great to set really high goals, it's all too easy to become discouraged and give up if you can't reach......
- Modern (1970-Now) Clothing Patterns Patterns Doll Making & Repair Dolls Dolls & Bears
- Life Jacket Clothing Clothing, Shoes & Accessories Fishing
- Leverage Arm Curl Attachment Benches Strength Training Gym, Workout & Yoga Exercise & Fitness
- For Two People Floats & Rafts Pool Fun Pools & Spas Yard, Garden & Outdoor Living
- People Statues & Yard Art Garden Décor Yard, Garden & Outdoor Living Nursery
Categories:
Debt, Financial Security, Investing, Leverage, Money, Personal Finance, Wealth
Tags:
5 comments ↓
[...] Leverage presents The Key to Successful Financial Planning posted at Rich Leverage, saying, “This post discusses briefly ways to manage debt by [...]
[...] that motivation that is key to your financial success. Goal setting is a very important part of any financial plan, and if you are finding it difficult to put money aside, formulate new streams of income, or just [...]
[...] there are some early warning signs that may indicate that the future might be a bit gloomy. The key to successfully preparing for your future is to avoid known behaviors that can be disastrous to your finances. Here are some of the warning [...]
[...] The Key to Successful Financial Planning. It’s never too early to start planning for your financial future. [...]
You’re right about the fact that your salary alone is not going to cut it. Passive income is the way to go and that’s the plan I have for my own future of financial independence.
I also had a chuckle at the car breakdowns since I had to do repairs back in September. It turns out I have now sold the car and it feels great – no more uncertainty.
Leave a Comment