4 Steps to your financial strategy

Discovering Your Personal Financial Path in Just Four Steps

Here at Utraz, we believe personal finance is a life-long journey – and an important one. If you are ready to begin the journey, but don’t know how, then you’ve come to the right place. 

Our four-step plan will help you to prepare for the financial path. Each step is guided by one question. Read on to discover your financial path. 

Step 1: Understand Your Finances

Question: Where am I today?

financial strategy

A journey begins with understanding where you are today. In the world of personal finance, this means three things: how much cash you have, your total assets, and your total liabilities. An asset is something that you own that generates income or wealth, such as land, stocks, or cryptocurrencies. A liability is a promise to pay someone else money, which could be a home loan or a credit card balance. Cash and assets have a plus (+) value, liabilities a minus (-). 

  • My Cash Balance = + £____
  • My Total Asset Value = + £____
  • My Total Liability Value = – £____

After you have your cash balance, assets, and liabilities, add them together to get a simple picture of your current finances.

  • My Total Wealth = £____

Step 2: Choosing a Risk Preference for Your Journey

Question: How do I want to travel?

financial strategy

Every journey is different. Traveling by motorcycle is riskier than by train. Both styles have different risks and rewards. Understanding your risk style is important in deciding how you will travel. Below are five different risk styles – which one are you? 

  • Very low risk 
  • Low risk
  • Moderate risk
  • High risk
  • Very high risk

Our risk calculator will help you choose which risk category is best for you. Click here to get started.

Step 3: Finding an Investment Style

Question: Where do I want to go?

After you have your risk preferences, you can start working on your financial journey. We think of this like deciding where to go. This is the third step of our financial strategy.

financial strategy

Maybe you want to save for a holiday. Or, you may be planning to save for a college education. These are all different financial destinations, and each will require a different level of risk and different financial products.

Step 4: Financial Product Recommendations

Question: What will get me to my destination?

financial strategy

Now that you understand where you are, how to travel, and where you are going, you want to understand what financial products will get you to your destination by following this final step of our financial strategy.

If you are a low-risk saver building money for a college education, you may want to invest in stocks, bonds, and ETFs, while keeping money in a low-yield savings account.

On the other hand, maybe you want to save for a holiday in three years. If you are a high-risk saver, you will want to take more risks with products like leveraged ETFs or cryptocurrencies. 

On the other hand, maybe you want to save for a holiday in three years. If you are a high-risk saver, you will want to take more risks with products like leveraged ETFs or cryptocurrencies. 

All Advice is available on the public domain, all our recommendations must be combined with your own research into the products/accounts and you must understand risks involved before investing, the balance of your capital may go up as well as down. We take no liability for any losses that may or may not be incurred from any of the sites associated with this website.