By Nick Carrigan
Yes, the majority of our clients are high-net-worth individuals and families. As new clients interview us, they are really trying to get clear on why (or should they) they should pay us a fee and devote the time to meeting with us? And quite frankly, is it worth it? Isn’t that a very fair question? We think so!
Of the hundreds of individuals and families that have hired us – that have leaned into our systems and processes, what could/can they expect? And, does it make a meaningful difference in their financial outcomes?
Tencap strongly asserts that there are a host of reasons that an individual or family is far more inclined to reach financial independence when working with a comprehensive financial planner from Tencap.
Nearly every professional playing a big-game has a coach; someone to teach and mentor them on the game they are playing. Someone that holds them accountable, someone that creates a plan, someone that can see blindspots and call them out. Someone to “push you” when you feel uncomfortable or weary or consider quitting or changing the game.
Tencap has seen that having a financial advisor that is willing to coach you around your money and investments makes all the difference when working towards financial independence.
Imagine going through life leading with a loose and sloppy financial plan, when suddenly, life throws you a curveball, like a medical emergency or a major car repair, or a major home repair. Regardless of the tax bracket you are in, we see this all the time. Life is full of turbulence and unexpected turns. Our goal is to reduce jarring financial jolts leaving you scrambling and stressed.
It’s a scenario that’s all too familiar in today’s unpredictable world. While you can’t eliminate life’s many twists and turns, you can do a few things to avoid the worst-case scenario and stay empowered and confident in the wake of financial emergencies.
In this article, we will arm you with eight money tips to keep you or your family financially stable. These strategies will help you build a sturdy foundation that can weather any storm!
8 Strategies for Financial Stability
In the face of uncertainty, these tested strategies for stability will empower your family to overcome unpredictable financial times confidently.
1. Create an Emergency Fund
One crucial reason why sudden expenses can wallop many families is illiquidity. Your wealth may be tied to assets or investments. In these instances, not having an emergency fund can leave you floundering while you make yourself liquid.
This safety net protects against unexpected financial shocks, such as accidents, medical emergencies, and storms or flooding. Consider opening a high-yield savings account to get at least some growth on your emergency fund while keeping it easily accessible.
Lastly, be aware that you can have way too much cash. All too often we have clients that slowly found themselves hoarding too much cash. When considering opportunity cost, this can be an expensive mistake.
2. Develop a Comprehensive Budget
Take control of your finances by creating a detailed budget that outlines your exact income and expenses. This step is crucial even without concerns of sudden problems because it lets you have a clear idea of your financial state.
Track your spending habits to find areas where you can cut back and allocate more funds toward savings and debt repayment. There are plenty of apps and tools to help streamline the process and stay organized.
3. Practice Prudent Living
While we don’t recommend becoming a miser, there are quite a few ways you can adopt money-saving habits without sacrificing quality of life. For example, maybe cooking meals at home could be a big saver. If you notice yourself buying specific products repeatedly, perhaps you can find a bulk source.
There are many opportunities to save on recurring expenses such as utilities, subscriptions, and entertainment. Every dollar saved contributes to your financial security.
4. Diversify your Income Streams
Relying solely on one income source can leave you vulnerable to financial instability. Seek opportunities to diversify your income streams. Consider freelancing or taking on part-time work. If you’re already overloaded, look at passive income ventures like rental properties or investments.
Diversification can provide additional security and stability, especially during economic downturns.
5. Prioritize Debt Repayment
High-interest debt is a silent but steady drain on your finances. They can be a significant roadblock to saving for the future, so develop a debt repayment plan prioritizing the highest interest rates. There are a few other strategies you can follow, so make sure to pick one that suits your circumstances.
6. Invest in Insurance
Insurance is another potential buffer in case of emergencies. Hopefully, this isn’t an issue, but if you experience something like unintentional injuries in children, health insurance can shield you from exorbitant medical expenses.
Depending on your situation, you could also consider life insurance or disability insurance. Your needs will dictate what type of coverage would be most beneficial.
We had a real-esate agent that had a child involved in an accident and needed several surgeries. They had lousy medical insurance and ended up on the hook for some significant bills that took them years to tackle.
7. Stay informed and flexible
Was the sudden expense or downturn really unpredictable, or could you have spotted the signs and made adequate adjustments? To avoid asking yourself this question, remain vigilant. monitor economic trends and stay informed about changes that may impact your finances.
This strategy helps you be ready to change your strategies accordingly. For example, you may decide to reallocate your investments or examine new income opportunities. Keep the mindset that you can only react to a situation you see coming.
8. Seek professional help
Don’t hesitate to seek assistance from a qualified family wealth advisor. Financial matters have many complexities and potentially impenetrable workings. While it’s possible to learn them on your own, why go through that when you can have a dedicated professional?
They can help you develop a financial plan aligned with your goals. If you’re planning for your retirement, for example, they can put you on the most confident and safe path without any second-guessing. They can also help you choose the best solution out of a predicament or unexpected development.
Just be sure to check that they have the necessary credentials and experience to help you out.
Financial Certainty in an Uncertain World
The primary thing you can rely on is your level of preparation and education. Implementing the strategies outlined in this article can empower you and your family to navigate any turbulence confidently, with a plan.
Remember, while challenges are certain, proactive planning and prudent decision-making will bring a calm to nearly any financial hurdle you face.
Tencap is proud that each of our advisors are stated fiduciaries in each case. This means that our team is committed to offering advice and building financial plans with your best interest. We have a binding legal obligation. We would not have it any other way. By subjecting ourselves to that obligation and standard, our clients know they can trust us. That trust is the catalyst to our growth and we are very proud of being a firm that has earned the trust of so many.
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.
