Five Benefits Of A Holistic Financial Planning Approach

According to the OnePoll survey, most individuals make bad financial choices eight times a month, with many overspending. And in a related poll, 77% of Americans admit to being stressed about their financial situation, with 52% confessing to having difficulty managing their money-related anxieties.

A simple solution to these challenges is adopting a holistic financial approach. With a holistic approach, everything is considered: a person’s lifestyle, nature of work, and income from investments — as well as their long-term goals and retirement plans.

It’s about creating a plan that goes beyond money — that works in harmony with the individual’s overall life goals and helps them reach their aspirations.

In this article, we will discuss the five key benefits of a holistic financial planning approach, and how it can help you reach your life goals.

What Is Holistic Financial Planning?

Holistic financial planning aims to address all aspects of your financial life. It takes into account everything that matters to you when making money decisions, including your career, family, health, and lifestyle. 

It helps you understand the impact of each decision you make on your overall finances. If you are ready to move past your money troubles, then it is important to adopt a comprehensive financial plan. 

The benefits of a holistic financial planning approach are many and varied, and they include:

Better Risk Management

Holistic financial planning enables you to build a financial plan that is specific to your needs. Research published by David M. Blanchett, Ph.D. in the Journal of Financial Planning showed that households with a holistic plan made more informed decisions than those without.


Another major advantage is that holistic financial planning helps to reduce financial complexities. It is easy to understand all the different aspects of money management and investing. In no time, you develop a better sense of how to use your money, know what investments to make, and how much risk is worth taking.

Greater Financial Freedom

Holistic financial planning allows you to make sound money decisions for both short and long-term goals. You’ll get a clear view of the different ways your financial decisions can shape and impact your future. Whether you’re looking to pay off debt or save for retirement, it helps you stay on track with your goals.


A holistic approach allows you to make changes to your financial situation in time rather than waiting for retirement or other major milestones in life. Your future goals and objectives can be made possible by taking necessary action today. 

Increased Confidence And Security

Knowing that your investments are in good hands can also help relieve stress and anxiety caused by uncertainty about the future. In one survey that was conducted, 65% of people with professionally written plans said they felt financially stable and safe, and 54% were “very confident” they will meet their goals

How Is It Different From The Traditional Approach?

Holistic financial planning considers all aspects of a person’s life, unlike a traditional plan. This includes budgeting, debt management, retirement planning, investments, insurance, and estate planning. 

A holistic financial plan is tailored and helps you to identify potential risks and opportunities, so you can make the most of your resources. It allows for more flexibility, as the plan can be adjusted over time as the individual’s money situation and goals change. 

Core Principles Of A Holistic Financial Planning Approach

The fundamental principles of a holistic financial planning approach are:

  • The individual is the center of attention. This can include things like focusing on the life goals of the individual, their values, and aspirations as well as their fears and concerns.
  • A tailored solution is developed with the client’s needs in mind. Your holistic financial planner will aim to develop a plan that meets your current circumstances but also addresses long-term goals such as retirement or college funds for children.
  • It is designed around your goals, risk tolerance, and time frame for achieving them so that it can be adjusted as needed to meet those needs over time.

Examples Of A Holistic Financial Plan

Suppose, for example, that you desire to purchase a new home within the next five years, but you have monthly expenses of $3,000. You want to know what is the best way to reach your goal.

A holistic financial plan would include a budgeting process, a comprehensive savings and money management plan, and maybe even insurance coverage.

You need to figure out how much money you have available to put toward the down payment, how much is needed for closing costs and taxes, and how much more is needed to make your mortgage payments each month. 

If your budget doesn’t include enough money for these expenses, you might need to reduce other areas of your budget until you can afford it.

How Can A Financial Advisor Help?

A financial professional can offer insight into how to make the most of your money and investments and help you stay on track to reach your goals. 

With a holistic financial advisor like Interactive Wealth Advisors – who provide expert wealth planning and management advice to individuals and families in Portland and all surrounding areas – you can gain peace of mind knowing that your finances are in good hands.

The Bottom Line

Taking a holistic financial planning approach can be a great way to ensure your financial well-being and security. 

It also helps you to identify areas of your finances that need improvement and develop strategies to address them. Ultimately, taking this step can help you to achieve success and security. 

What steps are you taking to ensure your financial future?

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