Creating a Long-Term Financial Plan

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Creating a Long-Term Financial Plan

Creating a long term financial plan can pave the road to a strong financial future.

A long term financial plan is the process of aligning your financial capacity with your financial goals. It helps you establish your long term financial goals, creates a strategy to reach them, and then tracks your progress toward success.

Your long term financial goals are the ‘big picture’ expenses in your life – paying off your mortgage, saving for retirement, starting a new business, putting aside money for an emergency fund, estate planning and developing an investment portfolio.

The long term financial planning process takes some time and effort in the short-term, but it is well worth completing to assist achieving your long term financial goals.

What are the benefits of creating a long-term financial plan?

Creating a long term financial plan has a number of benefits. Not only can it chart a course to financial success, but it provides financial peace of mind along the way.

Long term financial planning:

  • Helps you work out – and then set – your long term financial goals
  • Provides a pathway to achieving those financial goals
  • Is a great call to action – keeping you motivated and committed to achieving your goals
  • Gives you confidence in managing your money
  • Helps you save for your retirement
  • Helps you work towards financial security – for you and your family
  • Sets you on the path towards financial independence (what an incredible feeling!)

But perhaps the most important benefit of creating a long-term financial plan is that it gives you the power over your money to live the life you want – realistically. And the health and emotional benefits of that are immeasurable.

Financial goals

What are your financial goals right now? What were they five or ten years ago? Our financial goals change as our lives change.

Financial planning through life stages will help you reach your evolving financial goals and needs – no matter where you are in life.

By setting goals, creating a budget, saving money, and following your long term financial plan, you can start creating the financial future you want today.

Emergency Fund

Life has a way of throwing us curveballs when we least expect them.

Having money set aside in an Emergency Fund can be your financial ‘safety net’ – providing a source of income if you become ill, lose your job or need a major car repair.

Start small, and build up your Emergency Fund to a level that meets your stage of life and needs. Remember – the funds are out of bounds unless it is an emergency.

Financial independence

Financial independence is when your ‘passive’ income from your assets or business exceeds your living expenses.

For many, it is the holy grail of financial freedom.

The strategy to achieving financial independence is actually quite simple:

Step 1. Set your goals and create a budget

Step 2: Implement a long term financial plan that covers your expenses, protects you from emergencies, pays down your debt and plans for a secure future.

Step 3: Grow your wealth.

Saving for retirement

It’s hard to think about saving for retirement when you’re young or some years away from retiring. However, the sooner you start saving, the more time your money and assets have to grow.

If you want to look forward to a comfortable life after you finish working, think ahead and plan for it! Long term financial planning – which includes creating a budget, saving money, developing an investment portfolio and putting aside an Emergency Fund, may set you in good financial stead in the future.

Start today for a wealthier retirement.

Financial security

Ultimately, a financial plan provides you with financial peace of mind and security, no matter what stage of life you’re at – and what life throws at you.

Having an achievable, long term financial plan in place provides you with clarity around your financial future, reducing niggling stress and anxiety around money.

Creating a long-term financial plan – MBA Financial Strategists

MBA Financial Strategists have been helping people create achievable, long term financial plans since 1985.

To learn more about the benefits of creating a long term financial plan book an appointment with a financial adviser on a day and time that best suits you by simply using our online booking link.  Alternatively, phone the office on |PHONE| to make a suitable time.

MBA Financial Strategists Pty Ltd ABN 13 008 285 756 is an Authorised Representative and Credit Representative of AMP Financial Planning Pty Limited, Australian Financial Services Licensee and Australian Credit Licensee. This article contains information that is general in nature.  It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.