Finances

Financial plan strategies for security and independence

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This guide outlines the financial plan strategies and step you should take to achieve financial independence.

Depending on your current financial plan and situation, financial independence can be easier to achieve than you may think. Whether you want to save for an early retirement, or be able to live comfortably for a prolonged vacation period, there is an amount of confidence that comes from financial independence, and that is part of being a strong, independent woman

It is worth starting to approach your financial plan with a different mindset if you have difficulty managing your spending habits or regular outgoings at the end of the month. We appreciate that no two people share the exact same motivations, and that everybody’s financial plan and position is different. 

Financial plan steps and strategies

This guide covers a range of financial plan tips to help you work towards financial independence over time. For more information, check out CreditNinja where you can learn about managing your accounts and apply for loans if necessary. 

Set Goals

The first thing that can help motivate you when approaching your financial plan is to think about why you want to achieve financial independence. Some people create mood boards for the life that they want to lead once they have gained the savings and developed the right financial habits, as this can act as a visual reminder of what they are working towards. 

On the other hand, some people may prefer to write down their goals and be more specific in their financial plan. Whatever works for you, try to be as realistic and detailed as possible when you are setting your goals. 

Think about where you see yourself in ten years’ time, and how you plan to achieve this. Financial independence can seem more achievable when you are working towards a goal, or within a certain time frame. 

Budget

Once you have set yourself financial plan goals that will encourage you to work towards financial independence, you should begin to create a budget. It can be helpful to begin this process by laying out all of your bills, and everything that you are paying for on a monthly basis. 

Compare your regular income with how much you need to spend on essential items such as utility bills. This can allow you to create a realistic financial plan, and eliminate certain expenses that are less necessary. For example, you may find that you are still paying for a subscription service that you no longer use. 

Try to be brutally honest about what you need to pay for, and what can be cancelled. You should have an amount of money left over once your outgoings have been paid each month, but if you do not then it could be worth considering a change. Speak with your energy suppliers about a more affordable option, and you can even think about downsizing your home if it is achievable. 

Once you have mapped out your outgoings and have a certain amount left over, this should be budgeted for groceries and other essentials. Depending on your regular income, you could be able to save money over time if you have a certain amount left over at the end of every month. This is when you can consider investing it towards future financial independence. 

Investing

One of the simplest ways to multiply your savings is by investing. You could invest in stocks and shares, or even with local businesses or brands you are passionate about. Make sure that you have compared the rates of the stock market, and choose the right time to invest. 

You can invest as much or as little as you like, but it can be a great way to secure a financial future for yourself over time. 

Improve Your Credit Rating

Something that can open doors for you in terms of more significant purchases in the future is working on your credit rating. This is a score that banks, money lending services, and other financial institutions use to determine how reliable you are. 

They will use your history of debt repayments and your average amount of income to decide what amount of flexibility to give you. This can affect long-term financial stability, because a better credit rating allows you to have a more flexible mortgage plan with lower interest rates. 

Increase Monthly Income

Another thing that can help you improve your financial plan for stability and allow you to work towards financial independence is to increase your monthly income. This can be by setting up your own business, asking for a pay rise with your current employer, changing your job role, or getting a part-time job on top of your regular employment.

While it can seem like a challenging step, this is one of the best ways to begin seeing results, and allow you to save higher amounts of money each month. Think about what type of lifestyle you lead, and how you want to earn more money before considering a drastic job change. 

Seek Financial Advice

This can help you create healthier financial habits over time, and equip you with the necessary tools that will encourage financial independence. Try to be open with a financial advisor so that they can help you with a financial plan to achieve your goals. Many banks and loan companies provide their own financial advice service, but it could be worth comparing different suppliers to see which advisor would be the most suitable for you. 

Keep checking your financial plan

Of course, it can be easy to lose track of your financial goals over time. Life can easily get in the way at times, and allow us to lose perspective. That is why you should try to keep your goals in sight as much as possible. 

It is also worth taking the time to closely monitor your progress and see how relevant your plan is. Consider adapting your plan to suit your lifestyle, or to be more realistic about intended time frames. There is no point sticking to something that is unreasonable, or that you are no longer interested in. 

Summary

Regardless of your personal goals, working towards financial independence can be highly beneficial. While this is a long-term goal, it can allow you to set realistic goals in your financial plan and create healthier habits when it comes to working towards your future. 

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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