Financial abundance is the state of being able to meet your financial goals and obligations.
It’s more than just having money in the bank. Financial abundance is about feeling secure about your future, meeting all your financial obligations, and still having enough money left over to enjoy life.
Financial Abundance is a state of mind that brings a person to a point where they are confident enough to take care of their short-term as well as long-term financial needs through strategic planning and execution.
Having Financial Abundance doesn’t just mean you have a lot of liquid cash, it means you have thought about how you will use your money to reach your goals.
Financial abundance is not only about having a lot of money in the bank or in your investment accounts. It is also about making sure you can meet all your expenses no matter what happens, while still saving for retirement and other potential future expenses that may arise such as sending kids to university one day or buying a house.
Following the 6 steps below will put you on the right path to achieving Financial Abundance
Step 1: Take stock of your current financial situation
This is the first step towards creating a path to financial abundance. To begin, you need to take an honest look at your current finances and determine what you actually have to work with.
This will involve reviewing your income, expenses, and all of your current debts and obligations so you can see what you need to work with.
What is your current monthly income? How much do you spend each month? What are your current debts and obligations? What is your emergency fund situation like?
Taking time to understand your current financial situation will help you make a plan to move from where you are now to where you want to be.
You’ll be able to see your current financial position, what you need to do to increase your income and decrease your expenses, and what you will need to do to pay off your debts and make sure you have an emergency fund saved up.
Step 2: Determine your short-term and long-term financial goals
Next, you’ll want to determine what your short-term and long-term financial goals are.
Short-term goals are things you want to accomplish within the next 1-3 years, and long-term goals are things you want to accomplish within 3 years or more.
Some examples of short-term financial goals could be saving up enough money to pay off your credit card debt, saving up money to put a down payment on a car, or saving up enough money to pay for a family trip abroad.
Long-term financial goals could include saving up enough money to buy a house, saving up enough money to send your kids to university without going into debt, or saving up enough money to retire and being financially independent.
Step 3: Calculate how much you will need to reach those goals
Once you’ve determined what your short-term and long-term financial goals are, you’ll want to calculate how much you will need to reach those goals.
For example, let’s say you’re saving up enough money to buy a house. The first thing you’ll want to do is determine how much the house you want to buy is going to cost.
Once you’ve worked out the cost of the house, you’ll want to figure out how much money you’ll need to put down to secure a mortgage for the house.
Let’s say you’re going to buy a £250,000 house and you plan on putting 10% down on the house, which means you’ll need £25,000 to put down on the house. You’ll then want to take that £25,000 and figure out how long it will take you to save up that amount of money.
Step 4: Create a plan to reach your goals and stick to it!
Once you’ve determined what your short-term and long-term financial goals are and calculated how much you will need to reach those goals, you’ll want to create a plan to reach those goals.
Remember, reaching your financial goals will not be easy, so you’ll need to really be committed to following your plan to reach those goals.
It can help to write down your plan so you can review it as often as you need to stay motivated.
Keep in mind that you’ll also have to continuously monitor your finances as you go through life to make sure you’re staying on track. Things happen, unexpected expenses arise, your income may fluctuate, or you may have to make adjustments to your plan due to changes in your life.
You may need to make adjustments to your plan along the way, but the most important thing is that you stay committed to reaching your goals and don’t give up.
Step 5: Maintain Financial Abundance by continuously investing and expanding your knowledge.
As you are working towards creating financial abundance, it’s also important to maintain financial abundance.
This means that even once you’ve reached financial abundance, you’ll still want to continue to invest and expand your knowledge about investing and growing your money so you can create an even larger financial future for yourself.
Financial abundance is a never-ending journey.
You never arrive at financial abundance, it is a continuous process of growing and expanding your money.
When you’re investing, you want to make sure you diversify your money and don’t put all of your eggs in one basket. This means that you don’t put all of your money into one type of investment.
You need to diversify your money and spread it out between different types of investments so that if one particular type of investment goes down, you don’t lose all of your money.
Step 6: Celebrate the fact that you’ve created Financial Abundance for yourself
When you’ve finally reached financial abundance and are confident in your ability to meet all of your financial obligations, it’s important to celebrate the fact that you’ve created financial abundance for yourself.
It can be such a daunting task to try to reach financial abundance, and sometimes we can get caught up in the day-to-day work that we forget to celebrate our successes along the way.
When you’ve reached financial abundance, don’t just celebrate the achievement for a day or a week; celebrate the achievement for the rest of your life.
Financial abundance is an amazing gift that you can give yourself, and you should celebrate the fact that you’ve created financial abundance for yourself every day of your life!