Your Money Journey: Lisa Sakai
Let’s talk about Preventative Finance.
Imagine if you didn’t have to wait until retirement to enjoy the lifestyle you’ve always wanted. Instead of waiting around for the golden years, what if you could start living your dream life right now? Enter Preventative Finance – the secret weapon you didn’t know you needed.
Preventative Finance isn’t just a fancy term – it’s an approach to managing your money. It’s all about being proactive rather than reactive, much like preventative medicine. Instead of waiting for financial issues to erupt and then scrambling to fix them, you set up systems, use a life insurance calculator, secure the insurance, and strive to protect yourself before problems even arise.
“It’s all about being proactive rather than reactive, much like preventative medicine.“
The Proactive Approach of Preventative Finance:
Think about how medicine has evolved. We’re all about preventing illnesses with regular checkups and healthy living. Preventative Finance works the same way.
Rather than reacting to emergencies in life, why not plan ahead? It’s about anticipating potential challenges and opportunities. Then, you set up your finances to handle them smoothly. Less stress. Better for the wallet and goals.
The Unsung Hero:
One critical component of a Preventative Finance approach is liquidity. Imagine liquidity as your financial cushion. More specifically, it’s having easy access to cash when you need it, without jumping through hoops or facing penalties.
Now, I know what you’re thinking – “Why should I keep a bunch of cash sitting around?” Clients often grumble that cash isn’t growing as fast as their other investments. But consider this: If you suddenly need funds and they’re tied up, you’re in a pickle.
I was talking to one of the kids of my clients the other day. She wanted to know how to setup everything to keep her finances propelling forward. You should have seen her face when I talked to her about liquidity and an emergency fund. Her face drooped. No one likes to talk about the cash component of their plan, even a 23-year-old. But I assured her, and I can tell you now, having liquidity and some cash can set you up for success.
6 Steps To Build Your Preventative Finance Plan:
1. Assess Your Current Situation:
Have a look at your finances. Do you know where your money is coming from and where it’s going? Start by listing down your assets, liabilities, income, and expenses. Understanding your current financial picture is essential. You need to know where you are in order to be able to get to where you want to go.
“Clients often grumble that cash isn’t growing as fast as their other investments.“
2. Identify Potential Future Challenges:
What could go wrong in the future? While no one has a crystal ball, common scenarios can be anticipated. Think job loss, medical emergencies, home repairs, or even sudden travel expenses.
Here’s a quick list of common scenarios to consider:
- Emergency home repairs
- Sudden medical expenses (even with insurance)
- Unexpected job loss
- Car troubles
- Family emergencies
What Can Help In Times Like This?
3. Create An Emergency Fund:
Start with an emergency fund. Experts recommend setting aside at least three to six months’ worth of living expenses. This fund should be in an easily accessible account, like a high-yield savings account.
4. Get Insurance Coverage:
Make sure you’re adequately insured. Health insurance, homeowner’s or renter’s insurance, and life insurance are non-negotiable. Review your policies regularly to ensure they still meet your needs.
5. Diversify Investments:
Don’t put all your eggs in one basket. Diversify your investments across different asset classes to manage risk and enhance returns.
6. Estate Planning:
Make sure you have a will and, if necessary, a trust. These documents ensure your assets are distributed according to your wishes and can help avoid legal complications.
“Start with an emergency fund. Experts recommend setting aside at least 3 to 6 months’ worth of living expenses.“
Why Implement Preventative Finance?
1. Peace of Mind:
Knowing that you’ve anticipated and prepared for financial challenges can bring immense peace of mind. Say goodbye to sleepless nights fretting over what-ifs.
2. Financial Stability:
When your finances are solid, you can weather unexpected storms without derailing your goals. It’s all about staying steady on your path.
3. Long-Term Wealth Preservation:
By planning ahead, you’re not just making your life easier in the short term. You’re also preserving and growing your wealth for the long haul.
Live Your Best Life With Preventative Finance :
Your financial plan isn’t a set-it-and-forget-it deal as much as you would like it to be. Schedule to review and tweak it regularly, at least once a year. Life changes, and so should your financial plan. Preventative Finance isn’t just a concept; it’s a way to live your best life now while securing your future. Take control of your financial future today by taking proactive steps. You’ll thank yourself later, and who knows? Maybe you’ll kick back with a cocktail, not just at retirement but right here, right now. Here’s to unlocking your best life, one financial plan at a time!
Note: Investment advice offered through Integrated Financial Partners, doing business as One Vision Retirement, a registered investment advisor. The information in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Integrated Financial Partners does not provide legal/tax advice or services. Please consult a qualified legal/tax advisor regarding your specific situation.
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About the Author:
Lisa Sakai is a Financial Consultant who works with clients on Bucket List Acceleration and getting to live the life they want now. As the co-founder of One Vision Retirement, she has been working with clients across the country for over 12 years. Lisa’s advice provides easy to understand, logical steps and exercises that people can take action on right away. Learn more about Lisa Sakai here at One Vision Retirement.
Need help getting started? No sweat, set up a no-obligation, Get to Know you Call today: https://calendly.com/onevisionretire/gettingtoknowyou One Vison Retirement. Your Path to Financial Independence with 20/20 Vision.
