How to Create Lasting Financial Security Using Financial Assets: A Comprehensive Guide
- Ranjit Jayakumar
- Nov 17, 2023
- 3 min read
Welcome to a comprehensive guide on how to create lasting financial security using financial assets. In this post, we will discuss various strategies and tools that can help families create a lasting financial security for their future.
Whether you are a 40-year-old man with 2 kids and 1 wife or someone with a different family structure, the principles we discuss will be applicable to your situation.
Assessing Your Financial Situation
When you start your financial journey, you have to start by first knowing your current financial situation. You have to know how much you earn, all sources of income, all your expenses, areas where you have to cut back and any investments you have. Your assessment has to be detailed so that it is very clear and so that it will help you create a good financial plan.
Creating a Financial Plan
Creating a Financial Plan is not as easy at it seems. If you have assessed your existing situation well, you can prepare a good plan. You also need to know your financial goal, how much you need to save for emergencies, how much you need to set aside for investment for the long term. A financial plan should keep evolving, that is, it should be improvised at a regular interval and corrections should be made when you are not able to balance your income and expenses. There is an excel sheet which you can download and use to create a budget.
Investing in Stocks and Bonds (and Real Estate)
When you start, start safe. Invest in guaranteed returns products. However, set aside time to try and understand more about investments. Understand the benefits and risks involved in each kind of investment. If needed discuss with a specialist or some one who you know who has a deeper understanding of various investment options. Never bet on only one kind of investment. Ideally, you have to know your risk appetite and create an investment portfolio just for you. Invest in gold and land as well. Though land and gold will not generate income on a regular interval, but will appreciate faster than all other kinds of investment.
Retirement Planning
There will be a time in your life that you will stop earning a regular income from a job. You need to have a proper retirement plan to ensure that at that time you have a regular income to take care of your day to day needs and medical needs. You also have to be covered with a good health insurance to ensure you hospital bills are taken care off. Retirement planning should be thought through thoroughly. You need to know what you living expenses are currently and calculate how much income you will need at the time of retirement. So to have that income flowing you need to calculate how much corpus you need to build. Don't worry and don't think it is difficult. If you need help in this area you can reach out to me and I'll be happy to help you.
Conclusion
Creating lasting financial security using financial assets requires careful planning and consideration of various factors. By assessing your financial situation, creating a financial plan, investing in stocks and bonds and other investment options, investing in real estate, and planning for retirement, you can create a lasting financial security for your family.
To help you get started, please download my free Monthly Budgeting Sheet below.
If you have any further questions or would like to discuss your specific situation, please reach out to me and I'll be happy to help you.
Comments