The Proven 4-Step Guide To Incredible Financial Success

By BankBazaar | September 6, 2017

The 4 Stages Of Financial Success

Everyone aims to achieve some degree of financial success, even though it may seem like an uphill task. But worry not! We’re here to help you get there by guiding you through the 4 stages that will help you achieve your financial goals.

Remember, staying motivated is the key to making your journey a successful one. So, with that in mind, let’s go through each stage one by one.

Additional Reading: Financial Goals To Hit Before The Big Three-Oh!

Stage 1: Awareness

The first step you need to take on your journey is to realise that an improved financial situation is something you definitely want as well as need. Before any improvement is possible, you need to analyse your current financial situation and identify areas that need change or improvement.

This can be done by selecting a goal or a problem to solve. Maybe you have Credit Card debt weighing you down or maybe you aren’t saving as much as you should. It is important that you are aware of the areas that need immediate attention so that you can focus on tackling them slowly but surely.

Additional Reading: Tips To Deal With Credit Card Debt

Stage 2: Control

Now that you have outlined your goals, work towards directing your finances towards achieving these goals. Divert a certain amount towards repaying your debts or maybe even draw up a strong savings plan. At this stage, it’s all about grabbing the bull by the horns and taking control of your finances.

With discipline and commitment, your savings will increase and your financial situation will improve. What is important at this stage is that you control your finances by curbing your spending and budgeting your money effectively. Stick to your plan come what may and you will see a drastic improvement over time.

Additional Reading: The Dos And Don’ts Of Budgeting

Stage 3: Financial Security

Work towards attaining financial security for yourself and your family. When you gain some degree of control over your daily and monthly spending, you will be in a better position to build the foundations for financial security.

Some ways to create this sense of financial security is by making the right investments to guarantee long-term wealth. You should also be able to access your money when you need it. Investing in liquid funds may help you there.

Additional Reading: An Introduction To Liquid Funds Or Money Market Funds

Another way to work towards financial security is by building an emergency fund. An emergency fund acts like your financial cushion in the event of any unforeseen financial emergency. You should ideally build an emergency fund that is equal to six months (if not more) of your expenses.

Additional Reading: Why Do You Need An Emergency Fund?

You should also consider acquiring a Life Insurance policy to safeguard your loved ones in case something were to happen to you. Think about income protection plans. This will help safeguard your family’s financial situation should you meet with an unfortunate accident or were incapacitated, thereby making it impossible for you to earn a living.

Just so your hard-earned savings are not depleted by the onset of a serious illness or medical emergency, you could also further provide financial security for your family by taking out a Health Insurance policy.

Additional Reading: Why Health Insurance Is A Must In Financial Planning

Stage 4: Financial Independence

You will have attained financial independence when you can make decisions on a day-to-day basis without stressing about your financial situation.

There are two ways to achieve financial freedom.

  • Getting rid of debt

A debt can be a heavy burden to carry. Before you can really begin to experience financial success, clearing any and all outstanding dues is absolutely imperative, regardless of however big or small your debt may be.

  • Investing

Making wise investments is the best way to building long-term wealth for yourself. This will go a long way in securing your financial future. But remember, investing does not necessarily mean higher returns. Choose the right investment options depending on your financial situation and your risk capacity. As long as you make wise investments choices and are patient with them, you stand a good chance of seeing your money grow over time.

Additional Reading: 10 Financial Mistakes You Will Regret At Age 50

Ready to take the first steps towards financial success?

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