We cannot run away from the fact that the world is changing. We are in a different realm of living and lifestyle management. The human race has moved from the pre-planned life cycle that consisted of going to school and graduating, getting married, buying a house and car and having children; to being more tenacious in approach. Millennial’s want to live a purpose filled life, we want to leave a footprint in the world. We prioritize travelling the world and having fulfilling careers then the old school; buy a house and car, take care of your family and stay in a stable job kind of life.
But what does this mean for your finances? What does this transition from life security to life fulfillment mean for your finances, lifestyle, financial planning, income generation, expense and wealth generation? Even though there is a difference between how the baby boomers and millennial’s do things, what remains constant is the need to have control over our personal finances.
Personal finance is of high importance. It is what helps us to maintain the lifestyle that we have and also achieve the goals that we have. For this to be possible we need to always plan ahead. Think about it… when you go on holiday, you save in advance. When you want to go back to school and advance your tertiary education, you need to plan ahead. This is the same for personal finances. Being able to meet your current expenses and future financial requirements needs you to plan ahead. The question than arises, how do I get to the point creating the financial backing needed to achieve these goals, to live a purpose filled life and maintain the lifestyle that I’m currently living?
Even though a lot of practitioners will vary in their response to this question. What remains constant is the belief that we need to think ahead, think for the future. Millennial’s want contemporary ways of meeting their goals and building financial safety nets. Whilst the market has created a vast number of vehicles that can allow you to reach your objectives, it is important to analyse the product and what the intention of the product is.
In the previous article I wrote. We spoke of writing down the goals that you have and the three steps underneath each goal devising a strategy as to how you will reach the goal. Streamlining your goals allows you to:
- Affirm what your objectives are.
- The strategies you will put in place to free up money so that your goals are achievable.
- Have a clear understanding of what you need to accomplish these goals.
- Shop around for financial products that will best suit your financial objective to reach your goals.
When shopping around for a vehicle, whether It be an investment, risk planning product, savings account etc. Don’t be afraid to speak to various service providers and ask all the relevant questions. It is also the obligation of the financial service provider or intermediary to simply explain the various products that they offer. Because you have written down your goals and the have a clear understanding of the of your requirements, you can now compare the product to the goals that you have created.
This can be a very daunting task. Getting the right type of product that is aligned with your present needs and future goals requires time and patience. Qualified professionals are experienced and skilled in making these decisions. Financial coaches can assist you in understanding what your goals are, what requirements you have to accomplish these goal and also the appropriate vehicle that can assist you in making this decision. Should you require these services shop around for a professional that can assist you in making the right decisions. This will give you peace of mind that a professional is taking care of your financial needs.