October 17, 2022

What is Holistic Financial Planning, and Who is it for?

Have you really thought it through? Are you very much sure about it? Think again.

Holistic financial planning is an essential task for 21st-century modern living. Living an independent life provides you with the freedom to make your own decisions. It also helps you develop a budget for your standards of living and improvement. When it comes to personal finance management, one must keep in mind that it does not encompass your income and spending.

Holistic financial planning is defined as having a complete view of your finances to such an extent that you have the ability to make decisions and better future planning. Personal finance management is one tool in this aspect.

It comprises understanding your actual market value in the current world. Living life does not necessarily mean you have to work and earn and spend money. It means that you have a plan for increasing your resources of income and also coming to terms with it for a better future.

While planning the next ten years, do you have multiple sources of income? Do you think your current income considering yearly increments, will be sufficient for the next ten years? If not, then you need holistic financial planning.

Why do you need Holistic Financial Planning?

It is because it develops your personality in ways you won’t imagine. It seems to be strictly associated with your money, but it concerns you too.

1- Vision Alignment

Remember in school when your teachers used to tell you about having ambitions? It was all true!

Having ambitions in life is a very positive thing, but following them aimlessly is just a waste of time and energy. You must divide your ambitions into visions and missions. Make a future image in the form of a vision for yourself. Then set a small mission to accomplish this bigger vision. Sounds tough, right, but it is not so.

With Holistic planning, you will be able to track your vision more clearly and precisely. Personal finance management is significant to vision alignment as well. As your manage your finances, you have a great chance of building a realistic vision for yourself; therefore, a holistic view of finances is always the best option.

2- Flexibility

You are stuck between two binaries, i.e. (overspending/being thrifty). You tend to see create a balance between these two but all in vain. Overspending is causing financial loss while being thrifty is unpleasing for your relationships. What to do in this situation? The best advice is to stay flexible as per your requirements.

Now, this is easy said than done. Flexibility in your personal financial management is only possible when you tend to have a complete plan for the future. At least it would be great to have a visual idea of the amount in your account and how it is to be divided. Holistic financial planning provides you with the exact amount of details and long-term possibilities, which allows you to be more flexible about your money.

3- Self-Worth

When you have the assurance of the amount in your account and ample savings for the future, you are definitely becoming more confident. While dealing with your reports, you must stand firm on your take on your future. Personal financial management is all about taking decisions into your own hands.
While you are planning your finances and are independent, you tend to build self-worth about yourself, which improves your personality as well. The liberty of making your own decisions is indeed a blessing. Through holistic financial planning, you can achieve self-worth.

self worth

Tips to Adopt Holistic Financial Planning:

1- Know your worth

Know your worth considering the current market. You might have a great deal of money in your bank, but can you actually be able to use it in the next six months? Have you paid your taxes? Have you considered the interest rates on mortgages and other investments you have made? Is your car going to consume the same amount of fuel as last year? Have you calculated the expenses for outings and trips this year?

If not, then think again. After calculating all these expenses, you will be able to get a holistic view of your finances. Then you can decide your worth in the market and then plan accordingly.

2- Debt Details and Investments

Check your debts, if any. If left unnoticed, your credit card dues will bring a lot of problems for all of you. Your debt will be a huge hindrance to your future, and you might not even be aware of it.
While sitting on your couch, whenever your debt hits your head, you tend to escape it by watching a movie or buying something online, but this is just adding more problems to your situation. Address your debts first and then jump to other plans. Personal finance management can be helpful in this regard.
Holistic financial planning bridges gaps for various investments. Once you have saved yourself from future debts, you are now open for business in the market.


3- External Linkages

Adding external linkages to your financial plans is also one good strategy for holistic planning. This does not mean that you let someone else decide for you, but you instead ask someone or hire some professional to view your profile. This can reduce your chances of committing an error yourself.
Sometimes, you are unable to break the negative pattern in your life; therefore, having someone monitor your finances for some time is not such a bad idea. Flamingo Tech is a user-friendly application that helps its customers in getting rid of debts and provides healthy holistic financial plans.

4- Online Holistic Financial planning

With online holistic financial planning apps, you can make your lives really easy. Just by clicking on these apps, you can have a complete profile view of your money. Flamingo Tech offers investment and holistic financial management plans with just a single click. Get your app now!