Holistic financial planning combines life goals with financial strategies, so that every plan supports your short and long term future plans. A well crafted plan protects your future, raises financial awareness and encourages proactive management. This includes opening a savings account, making careful investments or adjusting your expenses. It’s about turning plans into reality, keep checking your process and adjust to life changes.
How do you build a holistic financial plan?
It considers all aspects of personal and financial life to craft a strategy. It goes to your investments, as it weaves goals, values and big life changes to build personalized financial budgets. There are two things to consider while building a plan:
Bring your finances together
It comes down to integration. Like, when you have a financial plan,
you should consider your expenses, savings, tax plans and long term
goals in your life.
Protect your money and manage your risk
Risk management and asset protection is considered to be part of holistic planning. Strategies include asset distribution and structuring it to protect your finances against unexpected events. Create a financial plan that helps you have enough cash in immediate needs while investing in assets that grow over time which requires financial flexibility. This includes:
● Create a emergency fund
● Strategically using credit
● Investing in mix or multiple assets.
It offers more practical guidance when we take a comprehensive approach, looking beyond numbers and considering life goals.
How does holistic financial planning work?
Traditional financial planning can fall short or miss the mark in helping to prepare for the future. Nowadays many financial products and strategies seem familiar which make it difficult to find personalized financial planning. But this planning considers all aspects of economic life including life goals, values, lifestyle, income, expenses, assets, liabilities and risk tolerance. It connects financial objectives with vast life goats in family, career and health. It helps to
identify gaps in current financial strategies and any risk potential that impact financial stability.
Who can benefit from holistic financial planning?
It isn’t always a one size fits all solution but it offers a tailored
approach to manage your wealth and plans for the future. While some
prefer narrow focus, this planning can adapt to life changes which
includes marriage, career shifts and unplanned expenses. The group
that get benefit from this planning are:
● Young professionals: if you are starting your career, this
planning provides a road map to solidify tackling student loans,
having an emergency fund and setting long term goals, for some
secure financial future.
● Families: It helps families plan for children’s college, buying a
home and retirement often accommodating each family
member’s different financial goals.
● Entrepreneurs: It helps to manage both your business and
personal finances, its strategy helps you to balance needs and
risks of business venture with personal stability.
● Retirees: For those nearly or already in the retirement stage, its
approach offers multiple levels of perspective on managing
investments, cash flow, healthcare expenses and estate planning.
Holistic financial planning is flexible and works for many people. Its
especially helpful to make sure that your finances and goals align.
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