Wealth building is a long-term process that requires strategic decision-making regarding personal finance. A comprehensive plan is essential to building wealth. Most people currently enjoying a financially secure retirement made sound financial decisions in their 20s and 30s and thus became wealth builders.
You do not have to wait until you have enough money to start building wealth you can start making financially sound decisions today so that you can enjoy financial security tomorrow.
Devising a wealth building plan by yourself may be intimidating, perhaps even scary. But you don’t need to worry; with the GuardianWealth wealth builder app, our path to wealth is simple. The GuardianWealth wealth builder app is designed for people of all financial backgrounds and all walks of life. Whether you are a student, a newly-employed young adult, or in your forties without a solid retirement plan, GuardianWealth has your back.
The GuardianWealth app features a series of steps that will transform your current income into legacy wealth. It features resources that will help you expand your financial knowledge, give you moral support, and hold you accountable.
Note, however, that the biggest part of being a wealth builder is embracing delayed gratification and becoming disciplined about personal finance. Wealth building is a long-term process that requires you to be all in.
What follows are the GuardianWealth wealth builder app steps to financial security.
The first thing that the GuardianWealth wealth builder app does is a diagnosis of your personal finances. You start by completing a quick survey about your financial situation, and our digital financial adviser uses this information to create a plan that will help you achieve financial security. The app can also track your credit cards, online wallets, debit cards, and bank accounts to establish the state of your finances.
Your financial health lays the groundwork for your personalized wealth builder plan.
The GuardianWealth app features a budget planning tool that helps you meet your financial needs. The budget planner helps you set a spending limit for each personal finance category and alerts you when you hit 90% of your limit.
Personal expense categories include utilities, groceries rent, grooming, insurance, transportation, entertainment, debt payment, and health care.
Apart from helping you budget, the GuardianWealth app also monitors and generates analytics on your spending habits. It highlights negative patterns in your spending to help you recognize and overcome these habits and develop positive spending habits.
Positive spending habits include limiting impulse buying and planned purchases. Learn to look out for sales to get discounts and build your savings.
Once you have your spending in check, the next step in your wealth builder plan is to save for financial goals. If you don’t have an emergency fund or have excessive debt, your recommended plan will including setting up an emergency fund and/or debt reduction goal.
Saving is an essential part of wealth generation, and so it is a crucial element in a comprehensive wealth builder plan.
The GuardianWealth app helps inculcate a saving culture as part of its wealth builder strategy. The wealth builder app encourages and facilitates automated deductions of savings from your salary.
Saving should not be treated as a sidebar activity but rather as a central pillar in your wealth builder plan. As a rule of thumb, one should divide their net income in the ratio 5:3:2; more commonly known as the 50/30/20 rule.
According to the 50/30/20 rule, 50% of your net monthly income should be spent on needs, 30% on wants, and 20% channeled toward saving. Note that 20% is the minimum acceptable savings ratio, if you can save more please do so.
The GuardianWealth wealth builder app has structures to help you save better. For example, the wealth builder app allows you to compare savings with your peers and get tips for saving more.
The second thing to note as a wealth builder is that saving requires a purpose. The GuardianWealth wealth builder app helps you establish your short-term, medium-term, and long-term saving goals.
GuardianWealth app is all about personalization. People are at different stages in life and aspire toward different things. The app for building wealth helps you establish your financial needs and set SMART (Specific, Measurable, Achievable, Realistic, and Time-bound) financial goals.
A comprehensive wealth building plan should include saving accounts to prevent unplanned spending. The primary areas of saving in a wealth building plan include a retirement fund, an investment fund, an emergency fund and saving for upcoming major expenses. An emergency fund is critical because unanticipated events may derail your wealth builder plan.
You can also save for big-ticket items like a car, vacation, or home.
The GuardianWealth wealth builder app recommends using a savings goal calculator to help you establish the monthly contributions you will need to make towards each financial goal. It also helps you establish how long it will take you to save toward your goal. Finally, it shows you how much interest you will likely accrue at the end of the set saving period.
The GuardianWealth wealth builder multi-saving feature allows you to create separate accounts for different saving goals.
Saving with groups can be an important element of saving because they allow friends anf family to come together and save for individual goals. Each member in a saving circle contributes a pre-set amount to the circle and receives a lump sum amount on rotation.
Saving circles are an excellent wealth builder tool because each member feels some degree of accountability. They are best for saving toward big-ticket items and raising an initial investment deposit.
The App’s saving circle feature is great for those who are new to saving and those who may need some moral support from loved ones. You can also elect to submit your saving circle details to at credit bureau to improve your credit score.
The average American household owes up to $92, 727 in debt from various sources including student loans, mortgages, and credit card debts. Credit card debt is by far the worst because of the high interest it accrues. Credit cards also encourage poor spending habits.
High debt negatively impacts your credit score. Credit scores are calculated from data such as debt owed, payment history, credit history length, new credit, and credit mix. The data is found on one’s credit report.
Your credit score determines how much you can borrow and borrow and the interest rates you get. A good credit score translates to a higher loan limit at low interest rates and vice versa for a poor credit score. A credit score below 500 is poor, below 700 is fair, above 750 is very good, and above 800 is exceptional.
The GuardianWealth wealth builder app will help you gradually eliminate debt and raise your credit score. One debt management strategy the app encourages is the debt avalanche management strategy.
The debt avalanche method involves managing debts by paying them off from the most expensive to the least expensive. What makes the debt avalanche method great is that you end up paying less in interest. This means you are paying less money overall and therefore have more money to save towards wealth creation.
While the power of saving cannot be underestimated, the true path to building wealth is through long-term investments. Investments leverage savings to generate wealth.
While there are six investment classes, statistics show that most Americans prefer investing in either real estate or the stock market. Even though these two are the favorites, there is a disproportionate wealth creation between households that invest in stock and those that invest in real estate.
Statistics also show that households that invest in the stock market are wealthier than those in real estate. This is because stocks are productive assets in that they generate profit and cash flow. More importantly, you don’t need to get into debt to invest in the stock market.
While real estate also meets the criteria for productive assets, the downturns in the real estate market are more devastating than stock market fluctuations. Real estate downturns are accompanied by a decline in property value and even foreclosure. Real estate also requires a much higher initial investment that often cannot be acquired without borrowing.
Real estate is a viable wealth builder strategy. If you are established financially, real estate investments are fantastic ways to build wealth. However, for people under 40 who are still finding their financial footing, the stock market is a better investment.
The proven investment strategy for building wealth in the stock market is building a diversified portfolio and investing for the long term. Some people may opt for stock picking where one buys high-quality stocks at a cheap price in the hope that these stocks will outperform the market. This typically leads to getting stuck with underperforming stocks and massive losses, even among sophisticated financial experts.
Stock picking is about speculating and thus not a secure wealth builder strategy.
If you are interested in a time-tested investment strategy GuardianWealth’s digital financial adviser will serve as your guide. The wealth builder app builds diversified portfolios for each user based on your risk profile and financial goals. You can also automate your savings, making your wealth building process seamless. Just sit back, relax and watch your money grow.
Because knowledge is power. The GuardianWealth app also features financial education resources and tools, to better understand your money personality, make the right money decisions and avoid financial pitfalls.
A comprehensive financial literacy program should be incorporated into your personalized wealth builder plan. Wealth building is about empowerment and you cannot be empowered without access to relevant information. When equipped with financial knowledge, you aspire to do more and set higher standards for yourself.
That is why the GuardianWealth wealth builder app features a highly customizable financial wellness program that costs way less than a Netflix subscription. The GuardianWealth app deepens your understanding of the wealth-building continuum from good spending and budgeting habits to stock investment.
A wealth builder plan is essential for financial freedom. However, your attitude towards money plays a major role in your wealth builder plan.
As a wealth builder, you should embrace an attitude of delayed gratification rather than instant gratification.
Aspects of the wealth builder plan like saving and servicing debt are not fun, but they pay off in the long term.
The GuardianWealth wealth builder app is the best tool to help you generate and implement a comprehensive plan to build your wealth.