Looking to get into the Wall Street game? It’s certainly exciting to think about what unlimited financial prospects await you. And if you play the game right, you can rack up some serious dollar signs. But all of that will go to waste if you don’t properly plan your investment strategies.
Before dipping your toes in the water, do yourself the courtesy of coming up with a 10-year financial plan.
10 years may seem like a long time, but keep in mind that Wall Street is a long game, and not a place for instant gratification. But if you want to invest in something that can get you tons of money in the long run, it is truly worth it.
So, what exactly is a financial plan? What are the best ways to secure a 10-year financial plan? The guide below may help. Remember, it’s never too early to start building up a nest egg.
Building Your Roadmap
It all starts with an idea. The first step to creating your 10-year financial plan on Wall Street is to imagine your future. What exactly are your goals? What are you hoping to save up money for?
Perhaps you are thinking of your own retirement and you want to save for a long and happy future or a big holiday. Or, maybe you want to invest in college tuition for your kids. Either way, you need to know your goals before you start throwing money at Wall Street.
Getting help with financial planning is easy with all of the free or affordable resources online. You can make the plan yourself, or you can work with a financial advisor to get your feet off the ground.
Tracking Your Money
How much money do you make per month? How much money do you spend per month? You need a good idea of where your money is going and how much you spend each month.
Sort your spending into different categories, including bills, necessities, and extras.
If you spend too much going out to eat or shopping for new clothes, you might want to work on different habits before dedicating a portion of your income to Wall Street.
Getting Rid of Debt
You need to start chipping away at the mountain of debt you have before you can come up with a solid financial plan. This especially includes debt with high amounts of interest.
In the financial world, this is known as “toxic” debt, because it tends to dig you further into a hole before you have a chance to get out of it. If you want to get into more detail about this and also have a job so you can save enough money to invest in the stock market, make sure you check out wall street mastermind youtube.
Try getting help with debt consolidation or take out a personal loan to get rid of those high-interest rates. That way, it will be easier for you to start paying down your debt.
Once you have figured out what kind of plan you want to invest into, you need to find ways to protect it.
Make sure that you and your loved ones are always protected in the event of an emergency or financial setback. For example, you can try increasing the amount of contributions made to your retirement account. Or you can contribute more to your emergency fund than you usually would, just to give yourself some extra protection.
Always make sure to invest in insurance as well. Life insurance and auto insurance are important plans to put money into in the event of an unexpected life change.
Grow As You Go!
Coming up with a financial plan may seem like a lot of work, but it isn’t as difficult as it seems. Take it one step at a time, consult with some financial experts to set your bearings straight, and remember to always contribute towards your future.
You will thank yourself in times of need when you have plenty of finances to protect yourself with. Congratulations on getting started with Wall Street!