Let’s Build a Strong Financial Foundation
financial wellness, financial strength

Sometimes financial decisions can seem overwhelming and confusing. There is an abundance of articles and posts on how-to’s, as well as unlimited choices of financial apps to download. But how do you eliminate the noise and clutter, so you can focus on building a strong financial foundation?

Your journey towards financial wellness begins with a plan. Once you identify your top priorities, define your time horizons and commit to it, the next step is to evaluate your current financial health. A financial health assessment can provide a snapshot of your financial strengths and areas that need improvement. You can use it as a guide to create a plan of action to improve your financial wellness.

The 5 Stages of Financial Wellness

A strong financial foundation provides an anchor for your financial health. It gives you the freedom and flexibility to pursue your dreams and aspirations. It allows you to seize opportunities as well as persevere during financial hardships.

There are 5 key stages in building a strong financial foundation. The success of each stage depends on the strength of the others.

  1. Manage – this stage focuses on managing cash flow to meet current needs and navigating the balance between income & expenses.
  2. Protect – the next stage focuses on managing the risks of everyday life. This requires a review of your risk management plans, identifying gaps and addressing them.
  3. Borrow – this stage is about financial credibility. It makes sure that your financial decisions contribute to building a strong credit risk. This includes paying attention to your debt-to-income and credit utilization ratios.
  4. Grow – in this stage you define your financial goals and priorities. You begin to build a reserve for emergencies and personal wellbeing. You’ll align your savings and investments with your priorities. Over time you’ll increase your potential for returns through strategic diversification.
  5. Gift – finally, in the last stage you’ll develop an intentional vision of the people and organizations you want to impact in your lifetime and beyond. You begin crafting your legacy.

Let’s Build a Strong Financial Foundation

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