Whether they’re looking to buy a new home, save for a vacation, or want to start a family, everyone has long-term personal goals. However, not everyone has a well-developed plan for saving for their dreams. A personal financial plan is a major factor in developing wealth that allows individuals to achieve their short- and long-term aspirations.
Personal finance is a planning strategy that allows individuals to cover current expenses while planning for the future. While some elements differ depending on unique circumstances, a personalized financial plan usually involves the following factors:
Income from jobs, side hustles, and other money sources is the starting point of any personal financial plan. It’s impossible to properly plan for the future if you don’t know how much cash is flowing in each month.
Spending is any expenses an investor uses their money on. This includes rent, mortgage, food, clothing, hobbies, vacations, and entertainment. Keeping close track of costs helps an individual determine the efficiency of their habits.
The difference between the income an investor brings in and their spending represents savings. Everyone should aim to save a little bit each month to help achieve their goals and provide a nest egg in case an unforeseen event occurs.
These components help you maintain discipline so you can achieve your financial goals.
You know the common pieces that go into personal financial planning, but what goes into actually building one? Here are the steps that help improve your financial situation:
Before setting goals, you need to understand your existing financial situation. This helps you create attainable objectives and provides key insight into any adjustments you should make. This step includes determining your current net worth, which involves subtracting your liabilities from your total assets.
Once you have a clearer picture of your current financial standing, you can begin developing your personal goals. Structuring your targets in upcoming stages is an excellent approach; these include:
- Short-term: This includes anything you want to achieve in the near future, such as ridding yourself of credit card debt or building an emergency fund.
- Midterm: Consider the goals you want to reach in the next 10 years. This may include purchasing a house, paying off student loans, or starting a family.
- Long-term: Long-term goals are events that won’t take place for at least 20 years. These include saving for retirement, purchasing a vacation property, or making sure you have enough saved for end-of-life care.
You can’t predict life-altering events, like a natural disaster, job loss, or illness, but you can prepare for one. Make sure you’re budgeting for unforeseen expenses. This helps limit the impact they have on your financial planning.
After assessing your financial situation and creating your plan for the next stages of your life, you’re officially prepared to implement your plan. It’s important to have a disciplined approach and not give in to impulses that may impact your ability to save.
No matter how much work goes into the planning stage, no strategy is perfect. Taking time to assess your standing and make the necessary adjustments provides peace of mind knowing you’re on track to reach your goals.
Helping Investors Reach Their Goals With Custom Plans
Hobart Wealth believes each client deserves a customized financial plan and utilizes an innovative approach to create a strategy. Learn more about how we build trust with each individual.
Personal financial planning is a challenging task to handle on your own. Partnering with a reputable financial advisor is the best approach for getting expert advice that meets your needs.
The Hobart Wealth team believes you deserve financial advice from a planner that holds itself accountable. That’s why we offer comprehensive solutions that help you reach your dreams, including:
A well-designed personal financial plan protects more than your wealth; it also safeguards your belongings. Our asset protection solutions properly allocate your resources to shield your net worth from market upswings. We utilize a holistic 3-d risk assessment tool to assess your risk profile and preferred tolerance.
For many individuals, their long-term financial planning includes verifying their loved ones are protected for the future. Our family protection services help create generational wealth and safeguard your wife and children from unforeseen events.
Some people are so focused on saving enough to retire that they don’t consider if they have the assets to carry them through retirement. Our team works with you to build a holistic plan that helps you achieve your dreams and suits your goals.
Having a life insurance plan provides peace of mind that your loved ones are financially secure after you pass. We leverage our knowledge and experience to create a policy that reduces stress during difficult times and helps your family live comfortably.
The wealth you have is the result of years of hard work, and the Hobart team believes you should decide who receives it after you pass. Our legacy planning services create an efficient transfer of wealth and eliminate disputes between loved ones.
Building wealth is an important part of meeting your long-term personal financial planning goals, but making sure it’s self-sustaining is what really allows you to enjoy your retirement years. With our income planning strategy, you receive peace of mind knowing you have enough to carry you through the rest of your life.
For nearly two decades, Hobart Wealth has been helping individuals and their families achieve a financially secure future with our holistic financial services. We take pride in creating strategies that address your goals and preserve and protect your wealth. Contact us today to learn more about our solutions.
Hobart Wealth is a DBA of Hobart Private Capital, LLC. Investment advisory services offered through Hobart Private Capital, LLC, a SEC-Registered Investment Advisor. Insurance services offered separately through Hobart Insurance Services, LLC, an affiliated insurance agency. Investing in securities involves risk, including potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Any references to protection of benefits, safety, security or steady and reliable income refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company, and may be subject to fees, surrender charges and holding periods which vary by insurance company. Insurance products are not FDIC insured
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Hobart Wealth is a DBA of Hobart Private Capital, LLC. Investment advisory services offered through Hobart Private Capital, LLC, an SEC-Registered Investment Advisor. Insurance services offered separately through Hobart Insurance Services, LLC, an affiliated insurance agency. Hobart Private Capital and its affiliates are not certified tax or legal advisors. Any reduction in taxes would depend on your specific tax situation. You are advised to seek the advice of a qualified tax or legal professional for such matters. This information is intended for educational purposes only. It is not intended to provide any investment advice or provide the basis for any investment decisions. Investing in securities involves risk, including potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Please see Item 8 of our ADV 2A Brochure for additional information on the risks associated with our services. By submitting your contact information, you consent to be contacted in the future regarding retirement income strategies that utilize insurance and investment products. Any references to protection of benefits, safety, security, or steady and reliable income refer only to fixed insurance products. They do not refer, in any way, to securities or investment products. Insurance product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company, and may be subject to fees, surrender charges, and holding periods which vary by insurance company. Insurance products are not FDIC insured. Our firm provides links to third party articles to assist users in locating information on topics that might be of interest to them. Linking to an article or web site does not constitute a representation of the services offered by our firm nor does it constitute an endorsement by the Firm of the sponsors of the site or the products presented on the site. Please consult your tax, legal, and/or financial advisor prior to making any decisions regarding these third-party articles. Hobart Wealth is not affiliated with the U.S. government or a governmental agency. No information contained within was approved by, endorsed by, or authorized by the Social Security Administration.