Be that as it may, financial success doesn’t have to equate to a delicious French cake: millions in savings, high spending, complicated investment schemes, and expensive guidelines. The key to financial peace of mind is a lot like a simple and humble, but totally satisfying pumpkin pie recipe. You just need a few essential ingredients that are treated with a certain level of care.
Recipe and tips for financial success
Know Who’s Trying to Cook
Have you ever tried to cook a recipe that you have never tasted or seen a picture of before? It’s very difficult. It’s very hard to create something when you don’t really know what that thing really is.
Financial planning is no different. You need to visualize the future you want to live.
Also, your future doesn’t have to be the same as someone else’s. Seriously, do you want to know the secret? My family doesn’t really like pumpkin pie, so I made lemon meringue. Your financial goals don’t have to be the same as someone else’s, the important thing is to have a goal and a goal that makes you happy.
Make sure you have all the ingredients and tools
Following a recipe is much easier if you know what ingredients and tools you need and have all those parts on hand.
The ingredients and tools needed for financial success include:
- Income (and spending less than you earn)
- Your values
- It saves enough
- Investing money
- Protecting yourself from accidents
- Others know how
We have recipes for: The Boldin Retirement Planner is a complete cookbook for financial success. We will take you step by step to the future you want.
Read the Entire Recipe Before You Begin
One lesson I remember from learning to cook as a kid? Read the recipe to the end BEFORE you start.
Following any recipe requires a sequence of steps that may or may not be possible without understanding the end goal. Also, if you take the shortening too early while baking, it may result in a dangerous dish. Don’t overheat the butter and you’ll end up with a thick and greasy crust. Remove the pie from the oven too early and the custard is an oozy mess.
It is exactly the same with your financial life. You want to make sure that you are able to gather all the necessary ingredients and understand how to put them together in the right proportions, in the right order, and with the right strategies to achieve the financial success you desire. You need a financial plan for the rest of your life.
Use the Boldin Retirement Planner to create and maintain your financial plan.
Your Budget: Kind of Like a Pie Crust or Foundation for Financial Success
How much you earn, how much you spend, and how much you save are the foundation of financial success. It is the crust or the base of your financial pie.
You need to feel in control of your day-to-day and month-to-month finances and on track to meet your long-term financial goals.
Keeping a budget for today and planning for future spending needs is critical to your financial success and the keys to financial peace of mind.
Invest: Bake Your Savings
So, if we can continue with the analogy, investing is like baking your own pie. Your pie will not be eaten if you don’t put it in the oven and wait for it to do its thing. Baking a pie is like magic. You put the ooey gooey mess into the hot device and leave it alone while it turns into a set of silky custard with a soft crust that, if you’re a pie lover, is completely satisfying and delicious.
Also, you don’t want to be peeking into the oven all the time and making adjustments while your pie is baking, you have to put it in and forget about it.
You can apply the same strategy to your investments. Better stick your savings in sensible investments and just wait for the money to compound. With a long enough time horizon, you can ignore the ups and downs of the markets and let the markets do their thing, especially if you keep your investment strategy simple. Many experts recommend a buy-and-hold portfolio of index funds.
NOTE: Pumpkin pie is one part of the Thanksgiving feast. Also, depending on your investment goals and financial needs, index funds may be one type of asset in your overall portfolio. Here are some resources to help you decide which dishes you need and the best baking times and temperatures for your financial success:
Best asset allocation for different ages
Is a retirement bucket plan right for you?
Examples of asset allocation
Manage Credit : To Succeed Financially, You’ll Want To Make The Right Recipe Exchange
What is an analogy for credit in a pumpkin pie recipe? Credit may be the replacement you need to make if you don’t have all the necessary ingredients when you start a recipe.
Sometimes a recipe change produces happy results (Chinese five-pepper instead of cinnamon) and sometimes disaster (salt instead of sugar). The same is true of debts.
Taking out a loan that helps you get ahead in life: some college loans, home equity loans, and other car loans can be beneficial to your financial success (especially loans that can be more of an investment than a long-term loan).
However, some debt can damage your financial health and make it impossible for you to get ahead financially.
Understand the Risks
A few years ago, a few days before Thanksgiving, our oven went haywire. It would start, then randomly shut down. We called the repair people, they were booked. We looked into what might have gone wrong and the parts that were rush ordered from Amazon, didn’t arrive on time. Finally, we played around with it and couldn’t get the turkey and all sides cooked by turning the oven on and off every 10 minutes or so.
But, boy did I wish we had a double oven – a spare.
To be financially successful, you’ll want to have plans in place to support things that might go wrong: inflation, the need for long-term care, the ups and downs of the stock market. However, you won’t be able to think and plan for every possibility, so here are a few additional tips:
Don’t Forget the Whipped Cream: Prioritize What’s Important to You
Budgeting, investing, debt, risk can all be very stressful. However, money is not just a burden. In fact, money can buy happiness, especially if you use it to achieve what is important to you.
You want to organize your finances so that you can live according to your values and what makes you happy. After all, I don’t know anyone who really likes pumpkin pie without whipped cream (or ice cream). Your financial health also needs whipped cream.
Share with the People Who Matter to You
What’s the real point of baking a pie and cooking an entire Thanksgiving feast? It’s about sharing it with the people who matter to you.
One thing that some people regret on their deathbeds is not spending enough time with their loved ones. So, whether it’s sitting around the same table or a holiday call, prioritize the people who matter to you and how you spend your time.
The real trick to financial success is planning how to spend your time more than how to spend and allocate your money.
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