With the new year approaching, many people consider ways of taking control of their financial situation. Step one in creating a path to financial success is covering essentials. This means having a secure financial budget for needs which are essential to everyday life. The problem is that “essentials” are different for every person.
So What is Essential to Covering Daily Life?
While having an established budget for food and shelter seems obvious, the concept of covering essentials is more complex than that. For instance, while an essential for one person may likely be very different for the next person. The aspects can change by factors such as mortgage, number of properties, assets and more.
Essentials for Today and for Tomorrow
Covering essentials is more than just taking into consideration what you need to survive on a month-to-month basis. It’s establishing a plan to cover essentials for years to come. Financial advisors rely on Decidere to weight criteria that help find investment products which meet the covering essentials objective. Because these aspects vary as much as people do, the algorithm allows FAs to add weight to different investment products to help plan for the long term.
More Than Numbers
The advancement of current tools is allowing people to uncover options by creating scenarios which are not purely “black and white.” If you’re interested in how data-driven financial planning can provide realistic solutions, reach out to Craig Stiles and learn more about how he is using Decidere to change the process.