Now that we have begun the New Year, it is time to start thinking about some financial planning steps we can take to increase our wealth.
I wrote a short workbook on this subject entitled, Four Easy and Powerful Steps to Building Wealth. This workbook is available at no cost to anyone by signing up for the free membership to my website, the Intrinsic Value Wealth Report. The link for the workbook is: Four Easy and Powerful Steps to Building Wealth.
The four steps are as follows:
- Set up a recurring investment into your bank account.
- Determine an investment allocation.
- Select your investments.
- Start investing now.
The workbook has many resources to help you get started on investing in the New Year. Go to the link and sign up to get more details on starting your wealth building program.
Additionally, I would suggest that people of any age start planning for retirement. A good first step is to use one of the many good retirement planning calculators available. The Intrinsic Value Wealth Report has one that can be accessed at Retirement Calculators. Also, look into using a retirement savings vehicle such as an Individual Retirement Account (IRA) or a 401(k) plan. Click Retirement Accounts for information on IRAs and 401(k) plans.
In the financial planning field, there is a concept known as paying yourself first. It is very simple and works this way. Each month, the first money that comes out of your paycheck should be to your own savings account or retirement planning account. After that, you can pay your bills, go on vacation, go out for dinner, buy your groceries, etc. Following this simple guidance will ensure that you will be setting aside some savings each month.
Couples should plan for savings and retirement, as well. As couples, it is critically important for you to be in agreement on your savings and investment plans. If you are not in agreement, it is unlikely that your savings and investment plan will ever get started. I have seen many couples fail in their financial goals over the years by not being in agreement and working together on their family financial planning.
Napoleon Hill said that if you can imagine something, you can achieve or create it. This applies to achieving your financial goals as well. Visualize what you are saving and investing for, whatever it might be – college for your children, vacation, retirement, and so forth. And most importantly, START NOW! Don’t wait. Procrastination never gets you to your goals. Furthermore, the power of compounding your investment returns needs as much time as you can give it for the maximum possible benefit from investing to be achieved. The longer you have to save and invest, the larger the potential returns you can achieve.