We all hope to generate enough wealth in our youth to guarantee us and our families a financially stable future. However, wealth is not generate overnight. It takes intent, planning, self-discipline, and sacrifice.
So, how do you plan for and achieve wealth generation? In this article, we take a deep dive into wealth planning and its significance in our financial well-being.
Everyone needs some kind of help to achieve their financial goals. It could be advice, a push, a reality check, or help budgeting and saving. GuardianWealth offers a range of personal finance services including wealth planning. We will highlight the services and resources they offer to help you achieve financial freedom through wealth planning.
As we have stated above, wealth is not generated in a day. For most people, it takes decades of saving just to acquire a mortgage plan.
According to the results from a survey by the Federal Reserve, the average retirement savings amount for 63% of retirees is $60,000. Honestly, that is barely enough to last one five years.
So how do you avoid being broke at retirement? That is where wealth planning comes in.
Wealth planning is a personalized strategy that empowers one to save, invest, and generate wealth for a blissful retirement.
Before the age of fintech, wealth planning was a preserve of the select few who could afford to pay a financial advisor. Today, however, wealth management apps like GuardianWealth facilitate indiscriminate access to expert advice on wealth planning.
Comprehensive wealth planning involves a series of steps that lead one to wealth generation. Note that individuals have different financial capacities and financial obligations. The GuardianWealth wealth management app will start the wealth planning journey with you from whichever point you are at.
Personal finance management involves streamlining personal expenditure by taking measures like budgeting, cultivating healthy spending habits, and saving.
Most people live from paycheck to paycheck or beyond their means. The main cause of such unhealthy financial states is poor money management skills.
If you cannot keep track of your cash flow and expenses, you cannot save any money. If you cannot save you cannot invest in wealth-generating assets.
Wealth management apps like GuardianWealth have tools and resources to help resuscitate your financial situation.
The GuardianWealth app for starters features a budgeting tool with preset personal expense categories. Once you set a personal budget, you key in your target expenditure under each personal finance category.
The GuardianWealth app monitors your spending and alerts you when you hit 90% of your target budget. The aim is to stop you from busting your budget.
The GuardianWealth app also keeps records of all personal expenditure receipts and generates analytics based on the same. It uses these analytics to help you cultivate better saving habits and to identify saving opportunities within your expenditure.
Once you get personal finances in order, the next item on our wealth planning itinerary is financial planning.
Financial planning is the creation of a comprehensive wealth-generation strategy. A comprehensive financial plan paints a clear picture of your current financial status and your financial goals.
Personal finance apps, like GuardianWealth, start you off in wealth planning by establishing your current financial status.
They identify your assets such as emergency savings, house(s), vehicles, and payments into retirement funds. It also identify your current liabilities such as credit card debt and loans like mortgages and student loans.
They set your assets against your liabilities to establish your net worth.
Once your net worth is established, the next thing is to establish your financial goals. Financial goals range from short-term (a year), medium-term (3-5 years), and long-term (long-term).
GuardianWealth will help you establish your future financial expectations and design a personalized plan to help you get there.
You may want to buy a home or start a business in the next five years but are currently deep in debt. Your first practical goal would be to pay off your debt.
GuardianWealth will formulate a plan for you with adjustments you can make to start paying off your debts and raise your credit score. They will then help you to save more so that you can invest in your home or business.
For a financial plan to benefit you, you must be honest about your current financial situation, your goals, and your risk appetite.
The key to financial freedom is a strong saving culture. The first step towards achieving any goal in your financial plan is saving.
According to wealth planning experts, the rule of thumb is that one should contribute at least 30% of their regular income towards a long term investment fund.
When most of us think about retirement, we see ourselves old and grey and collecting menial pension paychecks. However, that does not have to be the case. If you play your cards right you can achieve all your financial goals and enjoy an early and stress-free retirement.
Playing your cards right is all about saving to generate wealth. However, wealth is not just about retirement it’s about having options. Having the option to follow your passion, to retire early, to take up a social cause, to resign from a toxic job or to take off work for an extended period to care for a loved one.
As a personal finance management tool, GuardianWealth will help you identify areas within your budget where you can make savings. They also offer resource that will help you make a sound financial decision to help you grow your wealth.
GuardianWealth will help you identify and utilize the saving options that will help you achieve your short-term, medium-term, and long-term financial goals.
Before we go into investing, if you are serious about building wealth you need to have an emergency fund. Emergency funds function as a safety net for one to land on during financially difficult times. Life will always throw us curve balls that may inhibit our financial wellness.
Apart from financial security, emergency funds and helps us keep our financial goals on track in times of financial distress. It cushions us from mishaps like job loss, injury, or illness. In addition, you should save for major upcoming expenses like weddings, vacation, childbirth, education in high saving accounts or low risk investment portfolios. Best practice suggests you create SMART financial goals that ensure that these expenses do not derail your long-term wealth creation.
GuardianWealth app takes a goal based approach to saving, making it easy for you to save for financial goals independently. When you are on track to meet your short and medium term goals, your chances of building wealth is significantly increased.
However, while saving is important, it does not generate wealth investing does. Investments generate wealth as follows:
To invest you must have money; that is why saving is important.
Finance and investing may be intimidating for people with limited financial knowledge, especially if only a limited number of people in your social network understands this topic. With a financial wellness program, you can take steps toward deepening your financial knowledge and thereby improve your relationship with money. You work hard for your money, your money should work hard for you. The great thing about GuardianWealth financial wellness program is that it is highly customizable, you can start with the ABCs of finance. You can also study at your pace, so for those with a busy schedule, this is a program that works for you, not the other way around. If a financial wellness program is not for you, don’t worry. GuardianWealth personal finance app is wealth building on auto-pilot – create a profile, set your goals and automate your savings, and the rest is done for you. Simply sit back and watch your wealth grow.
Investment plans on the GuardianWealth app are built by algorithms that use proven investment strategies to grow your wealth. At the core of their investment strategy are diversification and a growth mindset, thereby generating an asset portfolio that will maximize returns while minimizing risk.
Below are the basic things you need to know about investing to generate wealth.
An asset class is a classification of investment products with similar traits and behavior. Products in an asset class have common risk and returns, liquidity, and market fluctuations.
Below are the main asset classes you can invest in.
An asset portfolio is a compilation of investments from different asset classes. An asset portfolio is created from asset allocation; the strategy employed to create a variety of high-returns, low-risk investments.
GuardianWealth’s algorithm built by financial experts personalizes your saving and investment plans by taking into consideration your risk appetite, financial goals and timelines.
People who plan are ten times more likely to achieve their goals. Start planning for the financial future you hope for today.
You may have advance in age but it is not too late. GuardianWealth’s app offers wealth planning at your fingertips, setting you on the right track.