The larger a financial goal is, the more anxiety it’s bound to cause you. Long-term financial goals, such as retirement or your child’s college education, carry some serious stress – the kind that could literally keep you up at night.
There are a number of ways to alleviate the burden of wealth management, but most Americans fail to take a smarter approach and make investing a stress-free undertaking.
With these six tips, accumulating your planned future net worth and achieving financial goals is done with control and confidence.
1. Frequently Monitor The Progress Of Your Goals
If you wait until the end of the year to benchmark your progress, you run the risk of realizing a problem when it’s difficult to recover from. The longer you wait before addressing issues, the more stressful it is to return to a stronger financial standing.
2. Change The Logistics Of How You Save
Developing your future net worth hinges on proper saving. Few people realize, however, that sound savers prioritize the logistics of saving over how much they plan to save. While it’s an important component of wealth management, determining how much to save is not the most critical task.
You must create a process for setting money aside at the beginning of the month. This eliminates the likelihood of reaching the end of the month and not having the funds to put away. When you realize that you don’t have enough money at month’s end, your options are to:
- Save more money the following month, which creates unnecessary stress from trying to meet an unmanageable, stricter budget
– or –
- Ignore it and deal with the stress of getting off track from your main goal
Setting money aside up front helps you naturally adjust your spending throughout the month to accommodate your budget – a much less nerve-racking endeavor.
3. Leverage The Efficiency Of Technology
If you rely on manual processes to manage and track your portfolio and finances, you’re sure to become overwhelmed by the amount of time it demands. More than likely, you’re inclined to give up on the tracking altogether, despite its importance. And, without knowledge of your progress toward your financial goals, the unknown and fear breed suffocating stress.
Wealth management technology, such as investment tracking software and apps, aggregates your accounts and gives you a snapshot of your total net worth in one place. The knowledge – and its ease of access – is game-changing.
4. Set Manageable And Obtainable Goals
Setting a financial goal means knowing not only what you want your future net worth to be, but also what you could realistically achieve. Don’t set unattainable goals that would require unrealistic budgeting, investing and saving measures. Beyond setting yourself up for failure, these restrictive limits on your finances create stress in your day-to-day life.
Define a realistic goal based on your earnings and expenses. You’re more likely to achieve the smaller milestones that encompass the ultimate goal, which further motivates you in your efforts.
5. Take Advantage Of Available Expertise
If you’re unsure about where you stand, ask for help. Your financial advisor is there to answer your questions. Don’t hesitate to contact him or her for guidance.
If you don’t already have an advisor, consider the benefits of getting this support. Eliminating the daily stresses that might ultimately prevent you from achieving your goal is worth the cost of consulting a professional. Even if you are comfortable with your finances, it’s always a good idea to communicate with an advisor to ensure that you’re not overseeing even the slightest potential issue.
6. Plan For Big Purchases And The Unexpected
To avoid the stress of dealing with unexpected expenses, you should have a security blanket to fall back on when they arise. Identify a reasonable and appropriate amount to set aside each month to build this fund. When you need unexpected home or car repairs, for instance, you’ll be prepared.
You should also consider large purchases that require additional savings, such as a new car. Saving for these more substantial expenses over time eliminates the stress of bearing the cost in full when the time comes.
Learn the keys to smart retirement and college planning. Download our informative whitepaper today to gain control of your investments.