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One of the biggest challenges for new entrepreneurs is finding the right funding strategies for startups.  From bootstrapping and small business loans to grants, angel investors, crowdfunding and venture capital, this guide breaks down the top startup financing options. Find the pros, cons and practical tips of these methods and learn how to choose the best funding mix. 



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Starting a business is a bold move. It takes passion, vision and a lot of courage, especially when you’re doing it for the first time. But one of the first real-world obstacles new entrepreneurs face isn’t about the product, the market or even the competition. It’s about money.



How do you fund your idea before it becomes profitable? How do you pay for the tools, the team or the tech without draining your personal savings or getting lost in a sea of financial jargon?



That’s where a smart, tailored funding strategy comes in.



Your funding path isn’t just about getting money in the bank—it shapes how you grow, how much control you keep and how investors and partners view your business. <a href="https://successcom.wpenginepowered.com/i-dont-want-your-money-said-no-entrepreneur-ever-until-now/">Choose well</a>, and you’ll set yourself up with a really strong foundation. Choose poorly, and you may find yourself stuck with high-interest loans, bad investments or limited flexibility.



The good news? You don’t have to figure it out all at once. Funding your dream shouldn’t feel impossible—it should feel like the first step toward making it real. Let’s dive into some of the top funding strategies to get your business started.&nbsp;



<h2 class="wp-block-heading" id="h-bootstrapping-and-self-funding-strategies">Bootstrapping and Self-Funding Strategies</h2>



Bootstrapping and self-funding are common ways that startups get off the ground. 



<h2 class="wp-block-heading" id="h-what-is-bootstrapping">What Is Bootstrapping?</h2>



Bootstrapping means using your own savings, income or personal resources to fund your startup. It’s often the first step entrepreneurs take because it doesn’t require outside approval or give up equity.



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Pros:</td><td>Cons:</td></tr><tr><td>Attracts future investors who value founder investment</td><td>High personal financial risk</td></tr><tr><td>Full ownership and control</td><td>Limited growth unless external capital is added later</td></tr><tr><td>Builds financial discipline</td><td></td></tr></tbody></table></figure>



 Tips:



<ul class="wp-block-list">
<li>Start small and build from there. Launch with just the basics and improve over time. Your version one doesn’t have to be perfect. </li>



<li>Keep track of what you spend. Even a simple spreadsheet can help you stay on top of your money and avoid surprises. </li>



<li>Say no to shiny distractions. Skip anything that looks cool but doesn’t directly help you grow—like expensive tools or marketing fluff. </li>



<li>Put profits back into the business. If you start making money, use it to improve your product or reach more people, not just to pay yourself right away.</li>
</ul>



Bootstrapping might not feel glamorous, but it teaches you to be resourceful—and that’s a skill that will serve you well no matter how big your business grows.







<h2 class="wp-block-heading" id="h-small-business-funding-options-through-loans-and-credit">Small Business Funding Options Through Loans and Credit</h2>



Loans are one of the most traditional and widely used funding strategies for startups. They can give you the upfront cash you need to get started. You can obtain funds for buying equipment, hiring your first employee or simply covering day-to-day operations while you get your footing.



<h3 class="wp-block-heading" id="h-traditional-financing">Traditional Financing</h3>



Banks and credit unions typically offer small business financing through loans, as does the U.S. <a href="https://www.sba.gov/funding-programs/loans" target="_blank" rel="noreferrer noopener">Small Business Administration (SBA)</a>, which guarantees loans through approved lenders. These options often have lower interest rates and longer repayment terms, which can make them more affordable in the long run. But they also come with stricter requirements. You’ll usually need a strong credit score, a detailed business plan and sometimes personal or business collateral.



<h3 class="wp-block-heading" id="h-alternative-lenders">Alternative Lenders</h3>



If you don’t qualify for a traditional loan, don’t panic. There are newer, more flexible options. Online lenders and fintech platforms like Lendio and Fundbox offer faster applications and quicker approvals with more relaxed criteria. These can be especially helpful if your credit history isn’t perfect or if you need funding quickly. What's the catch? Interest rates are often higher, and repayment terms can be shorter, so it’s important to read that fine print.



<h3 class="wp-block-heading" id="h-risks-and-rewards">Risks and Rewards</h3>



Like all funding strategies for startups, there are pros and cons to borrowing money for your business. Loans give you a lump sum of money without giving up any ownership in your business, which is a big plus. But remember—this money has to be paid back, no matter how your business is doing. That means you’ll be responsible for monthly payments, even if sales are slow. If you’re not careful, fees and interest can pile up fast.



So before taking on any loan, ask yourself:



<ul class="wp-block-list">
<li>Can I realistically afford the repayments each month? </li>



<li>Will this loan help me generate enough revenue to make it worthwhile? </li>



<li>Do I fully understand the terms, including interest, fees and penalties?</li>
</ul>



A few beginner-friendly tips:



<ul class="wp-block-list">
<li>Shop around. Don’t take the first offer you get. Compare rates, repayment terms and total cost over time. </li>



<li>Check out SBA microloans. These are smaller loans (usually under $50,000) that are easier to qualify for and can be great for first-time entrepreneurs. </li>



<li>Ask questions. If anything is confusing, speak to a loan officer, a mentor or a financial advisor. There’s no shame in asking for help.</li>
</ul>



Loans and credit can be powerful tools, but only if used wisely. Make sure any debt you take on is part of a clear plan to grow your business, not just a short-term fix.



<h2 class="wp-block-heading" id="h-business-grants-for-startups-and-how-to-find-them">Business Grants for Startups and How to Find Them</h2>



Business grants can take effort to obtain and require an application. The application may be extensive and include a proposal, pitch or letters of recommendation. However, they do not need to be paid back.&nbsp;&nbsp;



<h3 class="wp-block-heading" id="h-what-are-grants-and-where-can-you-find-them">What Are Grants and Where Can You Find Them?</h3>



Business grants are non-repayable funds provided by government bodies, nonprofits or corporations to promote innovation and entrepreneurship. Places to look for grants include:&nbsp;



<ul class="wp-block-list">
<li>Federal websites (e.g., grants.gov) </li>



<li>Local economic development agencies </li>



<li>Private organizations and competitions</li>
</ul>



Grants are excellent funding strategies for startups because they don’t have to be paid back—but they’re also competitive. Try pairing them with other funding options (like small loans or crowdfunding) to keep your business growing without having to just rely on a single source.



Even if your first few applications aren’t successful, don’t give up. Each one helps you improve and learn while putting you closer to landing that perfect opportunity.



<h3 class="wp-block-heading" id="h-how-to-make-your-application-stronger">How to Make Your Application Stronger</h3>



Use these tips to strengthen your application and improve your chances of approval.&nbsp;



<ul class="wp-block-list">
<li>Tailor it to the grant. Read the guidelines carefully and highlight how your business matches what they’re looking to support. </li>



<li>Be clear about how you’ll use the money. Include a simple, honest budget that shows exactly how the funding will help your business grow. </li>



<li>Set real, measurable goals. Show how the grant will make a difference—for example, <a href="https://successcom.wpenginepowered.com/how-to-land-and-retain-first-customers/">reaching your first customers</a>, launching a product or hiring your first employee. </li>



<li>Stay professional and timely. Submit everything on time, proofread carefully and follow up respectfully if appropriate.</li>
</ul>



<h2 class="wp-block-heading" id="h-how-to-raise-startup-capital-through-angel-investors-and-crowdfunding">How to Raise Startup Capital Through Angel Investors and Crowdfunding</h2>



Finding angel investors or using crowdsourcing to secure funds are other options for small businesses just getting started.&nbsp;



<h3 class="wp-block-heading" id="h-angel-investors">Angel Investors</h3>



These are wealthy individuals who invest their own money in exchange for equity. They're often experienced entrepreneurs themselves. You can find angel investors through networking online, attending events in your industry, joining local entrepreneurship groups, making alumni connections or participating in angel network meet-ups or groups.



<h3 class="wp-block-heading" id="h-what-they-want">What They Want:</h3>



<ul class="wp-block-list">
<li>A compelling pitch </li>



<li>Market potential </li>



<li>A capable founding team</li>
</ul>



<h3 class="wp-block-heading" id="h-crowdfunding">Crowdfunding</h3>



Platforms like Kickstarter and Indiegogo let you raise funds from the public—usually in exchange for early product access or perks, not equity.



<h3 class="wp-block-heading" id="h-crowdfunding-tips">Crowdfunding Tips</h3>



<ul class="wp-block-list">
<li>Create a strong, visual campaign page </li>



<li>Use social media to drive traffic </li>



<li>Offer clear incentives for backers</li>
</ul>



Both approaches validate your idea and build an early audience—making them popular funding strategies for startups today.



<h2 class="wp-block-heading" id="h-venture-capital-tips-for-first-time-entrepreneurs">Venture Capital Tips for First-Time Entrepreneurs</h2>



Venture capital can be a strong funding option for startups, but there are pros and cons to consider. 



<h3 class="wp-block-heading" id="h-what-is-venture-capital-vc">What Is Venture Capital (VC)?</h3>



<a href="https://successcom.wpenginepowered.com/what-is-venture-capital-funding/">Venture capital</a> (VC) is a type of funding where investors give you money to grow your business, but in exchange for a piece of ownership in your company. These investors are called venture capitalists. They usually look for startups with high growth potential.



VCs don’t just write a check and walk away. Many <a href="https://successcom.wpenginepowered.com/backstage-capital-is-funding-underestimated-entrepreneurs/">offer advice, connections and mentorship</a> to help your business grow quickly. But in return, they expect your company to grow fast and make big profits.



<h3 class="wp-block-heading" id="h-when-to-consider-vc">When to Consider VC:</h3>



<ul class="wp-block-list">
<li>You’re scaling quickly </li>



<li>You need large amounts of capital </li>



<li>You're willing to share ownership and decision-making</li>
</ul>



<h3 class="wp-block-heading" id="h-vc-tips">VC Tips:</h3>



<ul class="wp-block-list">
<li>Perfect your pitch deck: team, traction total addressable market </li>



<li>Be clear about what you want from the investor beyond money </li>



<li>Understand term sheets before signing—consider legal advice</li>
</ul>



Building strong relationships with VCs early on can lead to future funding rounds and valuable mentorship.



<h2 class="wp-block-heading" id="h-building-a-sustainable-funding-strategy-for-long-term-success">Building a Sustainable Funding Strategy for Long-Term Success</h2>



No single funding path works for every startup. The best approach combines multiple funding strategies, starting lean with bootstrapping or small loans, then scaling through grants, angel investments and venture capital as needed. Stay adaptable, persistent and properly informed. All this will set your startup on the path to long-term success.



Ready to take the first step? Start exploring your funding options today and bring your entrepreneurial vision to life. Join <a href="https://labs.success.com/">SUCCESS Labs</a> to further your goals and connect with like-minded entrepreneurs.&nbsp;



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Learn about the best startup financing options from bootstrapping and small business loans to grants, angel investors, and more.

Discover the top five funding strategies for startups, from bootstrapping to venture capital. Learn how first-time entrepreneurs can raise capital, secure grants and grow smarter. | SUCCESS

Top 5 Funding Strategies for Startups—How to Get Funding for a Business in 2026

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How to Get Funding for a Business in 2026 (A Guide for Startups) | SUCCESS

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Meredith Eastwood is a content writer specializing in personal development, workplace psychology, and lifestyle strategy. With a background in education and a passion for behavioral insight, she brings clarity and depth to topics that inspire growth. Her work at SUCCESS explores emotional intelligence, workplace personality dynamics, confidence, and career advancement. Featured in outlets like Yahoo Life, Mashed, and House Digest, Meredith is known for producing thoughtful, engaging content that resonates with high-performing, purpose-driven audiences. Based in the UK, she approaches each piece with professionalism, curiosity, and a commitment to helping readers unlock their full potential.

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Meredith Eastwood

blonde woman and her teenager son shopping online use mobile phone and credit card

When I was a college student, I was bombarded by solicitors who wanted me to apply for a credit card. I thought I was being smart by declining them all because I didn’t want to get into a bad habit of charging expenses that I wouldn’t be able to pay off.  But the summer after I graduated, I was headed to Europe and I couldn’t find a company that offered me a line of credit because I didn’t have any <a href="https://successcom.wpenginepowered.com/kristy-kim-tomocredit-credit-access/">credit history</a>.



Eventually, I was able to get my first credit card, which had a very low balance and a very high interest rate, and I built my credit history from there. Now, as the mom of a teenager, I want to understand the best ways for her to establish her own credit, so she doesn’t come across the same challenges.



I connected with a few experts and got the following great advice.



<h2 class="wp-block-heading" id="h-teach-teens-why-building-a-credit-history-is-so-important">Teach teens why building a credit history is so important</h2>



<a href="https://successcom.wpenginepowered.com/how-to-improve-your-credit-score/">Good credit history</a> and a strong credit score can open financial doors that help people get a house, a car or even a cellphone.



“Credit history can play a part in getting the cellphone you want and having the service [plan] you think you need,” says <a href="https://www.experian.com/blogs/ask-experian/author/rod-griffin/" target="_blank" rel="noreferrer noopener">Rod Griffin</a>, senior director of consumer education and advocacy for Experian. “It can play a part in leasing an apartment. It can play a part in signing up for the utilities for that apartment... Your credit history could play a part in the job you get, especially [if you’re] managing a company’s money in some way. [Strong credit history] is going to be really important in establishing your life and being financially successful.”



The sooner teens understand that the responsible use of credit can benefit them and help them reach their <a href="https://successcom.wpenginepowered.com/how-to-set-financial-goals/">financial goals</a> in life, the better.



<h2 class="wp-block-heading" id="h-start-your-child-s-credit-history-while-they-re-young">Start your child’s credit history while they’re young</h2>



<a href="https://successcom.wpenginepowered.com/how-to-teach-your-kids-about-credit-cards/">Building a solid credit foundation early</a> in your child’s life is crucial, and there are several ways to achieve this. For example, if a teen is responsible, parents can add their children as authorized users on one of their credit cards, says <a href="https://jeannekelly.net/" target="_blank" rel="noreferrer noopener">Jeanne Kelly</a>, credit coach and founder of The Kelly Group Credit Coaching, who used this strategy with her own daughter when she was 16, had a job at the local library and was paying for gas to drive herself there. She added her daughter as an authorized user on a credit card Kelly didn’t use often.



“The bill would come in, and I was able to teach her [to] look at the receipts,” says Kelly. “Does this match? Is everything looking right? OK, let’s pay it in full. She would give me the money.”



Keep in mind that a debit card isn’t going to act like a credit card, she says. You need to make sure the charges and payments show up on your teen’s credit history.







Some companies offer starter cards, explains Griffin. The interest rate won’t be great, and the limit will be low, but they are easier to get when someone doesn’t have established credit. “[In the beginning], it’s good to have one or two [credit cards] and then to use them to make a small purchase and pay them in full.”



Another option is to use Experian’s credit match program. Your odds of getting approved for the credit cards they recommend are greater because they match your credit profile to qualifying criteria, explains Kelly.



<h2 class="wp-block-heading" id="h-teach-teens-key-credit-terms">Teach teens key credit terms</h2>



Teach teens to pay off their balance in full every month so they know to charge only what they can afford. Only paying the minimum balance due will keep the credit card in good standing, but you will still accrue interest, which can get colossally expensive.



Maintaining a high credit utilization rate can negatively impact a credit score. “High balances on that card are going to wreck your credit scores because the closer you are to the credit limit, the more risk there is that you won’t repay it, which causes your scores to go down,” explains Griffin.



<h2 class="wp-block-heading" id="h-be-patient">Be patient</h2>



Keep in mind that, in most cases, it typically takes anywhere from three to six months for a new card to be included in credit scores, says Griffin. Staying patient is important, as is understanding that there are no quick fixes when it comes to the health of your credit.



“It’s about your history… and the way you manage credit.… [Credit history] scores are looking at behavior over time, not just what you do today,” says Griffin.



At the end of the day, starting early and slowly helping your teen build a solid credit history is key. Teach them why it’s essential to be responsible and always pay off their debt in full. Explain the end goal and the importance of being patient, which will help them build strong credit for a lifetime of <a href="https://successcom.wpenginepowered.com/how-to-build-wealth/">financial success</a>.



Photo by Miljan Zivkovic/Shutterstock

Jaclyn Greenberg

Teach your teen smart credit habits. Learn how building credit, starter cards and responsible use can set them up for financial success.

Teach your teen smart credit habits. Learn how building credit, starter cards and responsible use can set them up for financial success. | SUCCESS

How to Help Your Teen Build Good Credit

How to Help Your Teen Build Good Credit Early | SUCCESS

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Charity De Souza

Congratulations! Your first day on the new job starts today. It’s a busy one, introducing yourself to a long list of existing clients. You pick up your <a href="https://successcom.wpenginepowered.com/12-steps-to-breaking-smartphone-addiction/">cellphone</a> and get to work.



Hardly anyone questions the practice of conducting business on a personal cellphone, a ubiquitous telecom development that in 2010 became known as <a href="https://planergy.com/blog/what-is-byod/" target="_blank" rel="noreferrer noopener">Bring Your Own Device.</a>—or BOYD. Consider that according to research by <a href="https://image-us.samsung.com/SamsungUS/samsungbusiness/short-form/maximizing-mobile-value/WHP-HHP-MAXIMIZE-MOBILE-VALUE-JUN18.pdf" target="_blank" rel="noreferrer noopener">Samsung</a>, 61% of companies expect <a href="https://successcom.wpenginepowered.com/how-remote-work-makes-workplaces-more-accessible/">remote</a> availability from employees—even those who are not provided a company phone. But the often-overlooked question here is, who pays for that business usage?



The average cell phone bill for a single person is $141 a month, according to <a href="https://www.jdpower.com/sites/default/files/file/2024-02/2024009%20U.S.%20Wireless%20Retail%20Experience%20Vol.%201.pdf" target="_blank" rel="noreferrer noopener">J.D. Power</a> (includes phone cost, line fees, insurance and extra data charges). If you use your phone for work 50% of the time, you’re looking at about $840 annually paid from your hard-earned salary. Unfortunately, employees cannot claim it as a federal tax deduction, either.



Where you can recoup at least some of the cost is through BYOD reimbursement. In the<a href="https://image-us.samsung.com/SamsungUS/samsungbusiness/short-form/maximizing-mobile-value/WHP-HHP-MAXIMIZE-MOBILE-VALUE-JUN18.pdf" target="_blank" rel="noreferrer noopener"> Samsung survey</a>, 31% of companies with a formal or informal BYOD policy paid the entire cost of their employees’ phone usage, and 40% paid at least a portion. Even so, many employees still have no clue if they are eligible for reimbursement. Worse, there are still companies whose BYOD policy does not include employee compensation at all—6% in Samsung’s survey.&nbsp;



That means you might have to take matters into your own hands. Here are some strategies to try depending on your company’s BYOD policy:



<h2 class="wp-block-heading" id="h-if-your-company-has-a-byod-policy-with-reimbursement">If Your Company Has a BYOD Policy with Reimbursement…</h2>



<ol class="wp-block-list">
<li>The best time to take advantage of cellphone reimbursement is when you get your job offer. Read your offer paperwork carefully and jot down any unanswered questions for HR.</li>



<li>Here are some sample questions to ask: Is a personal phone required? Will I be reimbursed and if so, how and how much? What are my options if I do not want to (or cannot) use my own phone for business? Do BYOD benefits cover loss or damage while on company business?</li>



<li>Larger companies typically either provide you with company cellphones or they will allow you to use your own. Remember to ask if you still get reimbursed even if you decide not to take the company-provided phone.</li>



<li>Stipends vary from company to company, usually based on their size. The base range is <a href="https://insights.samsung.com/2022/05/16/how-much-should-you-compensate-byod-employees-for-mobile-expenses-3/" target="_blank" rel="noreferrer noopener">$30 to $50</a>, although that can increase to $75 or even $100 if you are in a sales or travel-intensive position.&nbsp;</li>



<li>Know whether you’re getting a reimbursement or a stipend. Reimbursement pays you for specified phone expenses you have already incurred. You must submit a form and proof of expenditure before getting reimbursed. A reimbursement is usually capped at a certain amount, too. Stipends are a fixed amount you receive every month or every paycheck, regardless of any variation in your phone bill.</li>
</ol>



If you are already a year or two into your job, it is still entirely reasonable to ask about reimbursement. Go to your employee dashboard and look up your benefits–BYOD details should be listed there. If not, request them from your HR manager or your supervisor.







<h2 class="wp-block-heading" id="h-if-your-company-doesn-t-have-a-byod-reimbursement-policy">If Your Company Doesn’t Have a BYOD Reimbursement Policy …</h2>



<ol class="wp-block-list">
<li>Document your phone usage carefully for a few months (or compile the previous few months if you have records). Include time spent on business calls, insurance and any cost overages you incurred during that time (such as additional data needed or an international plan for business travel).</li>



<li>If you live in one of these <a href="https://mosey.com/blog/remote-employee-reimbursement-requirements/" target="_blank" rel="noreferrer noopener">states or cities</a>, you’re entitled by law to compensation for using your phone for business. Your employer should be made aware of this.</li>



<li>Companies without a formal policy may still have an informal one. Ask your supervisor for details and how to apply for BYOD compensation.</li>



<li>Your company may tell you that they do not reimburse or provide stipends. You can negotiate this when it comes time for a raise. Bring your prepared documents and ask for a sum to be added to your raise that covers reasonable phone usage. Repeat at every salary review.</li>



<li>What about a tax write-off? The bad news is that many miscellaneous deductions have been eliminated from the IRS tax code, including phone usage for business. The good news is that your state may allow it. Ask your tax preparer.</li>



<li>If nothing works and you still want to stay with the company but hate giving out your personal number, consider setting up an alternative phone number, such as through Google Voice. A business subscription would need to be discussed with your employer, to see if they would be willing to pay for it and if it satisfies their IT and security priorities.</li>
</ol>



The consensus on BYOD is that it is reasonable for employees to request fair compensation for conducting business on their personal phones. Should you take the initiative and ask, or maybe campaign for your company to create a fair BYOD policy? That’s entirely your call.



Erika Kotite is a freelance writer with a small business background. She enjoys exploring the issues where business and personal worlds converge.



Photo from TippaPatt/Shutterstock.com

Do you use your own phone for company business? Learn how and why you can be compensated on a “Bring Your Own Device” policy.

Congratulations! Your first day on the new job starts today. It’s a busy one, introducing yourself to a long list of existing clients. You pick up your | SUCCESS

BYOD Basics: How to Get Reimbursed for Your Phone Usage

How to Get Reimbursed for Your Phone Usage | SUCCESS

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Erika Kotite is a former magazine editor of small business and home design publications. She wrote two books about she sheds and has a Substack newsletter called The Velvet Chaise, which helps people find their inner she shed style even if it's in the dining room.

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Erika Kotite

Financial advisor explaining invest stock market data consulting investor. Two busy business men analysts doing finance trading analysis pointing at exchange chart on laptop screen working in office.

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Financial risk is the possibility of losing money from business or investments. There are five major types of financial risk. These include market risk, credit risk, liquidity risk, operational risk and inflation risk. Understanding, assessing and employing smart strategies to mitigate risk are key to a successful financial future. 



Whether you’re an individual, family or business, learning to weigh and manage risk is an integral part of making prudent financial decisions. In fact, if you’re going to try and <a href="https://successcom.wpenginepowered.com/how-to-build-wealth/">build wealth</a> in any way, you’re going to take on financial risk. This might be the risk of investing in public companies, which could fail. Or it may be the risk of getting a business loan to buy additional assets so you can expand your business operations—that could ultimately go under. 



If you’re going to succeed financially, you need to know how to assess and manage financial risk both as a consumer and a business owner. In this article, we’ll explain financial risk, how you can assess it and strategies you can use to mitigate it. 







<h2 class="wp-block-heading" id="h-what-is-financial-risk">What Is Financial Risk?</h2>



Financial risk is roughly defined as the potential for a person or business to lose money from an investment or business venture.



For individuals, financial risk is commonly seen in the stock market when <a href="https://successcom.wpenginepowered.com/3-keys-to-successful-investing/">investing</a> in public companies. Any company you invest in has the potential to have its stock value drop in price, whether due to internal or external factors.&nbsp;



For businesses, financial risk is usually seen in the form of cash flow issues. If they have problems making enough money, they may not have enough funds to cover their financial obligations. These could include credit card payments or business loan installments.&nbsp;



Financial risk does clearly pose a challenge for individuals and businesses via loss of capital, but it also comes with substantial benefits. For example, riskier investments such as stocks or private equity come with a higher potential for losing money compared to a certificate of deposit. From another angle, a business that takes out a loan (a form of financial risk) has the ability to purchase more equipment or hire additional staff to increase their production—thus increasing its overall profit.&nbsp;



In many ways, the old adage rings true: “No risk, no reward.” That said, not all financial risk is created equal. Let’s take a look at the types of financial risks you can face.&nbsp;



<h2 class="wp-block-heading" id="h-common-types-of-financial-risk">Common Types of Financial Risk</h2>



There are multiple types of financial risks both businesses and consumers should be aware of. Here’s a brief explanation of some of the most common types.&nbsp;



<h3 class="wp-block-heading" id="h-market-risk">Market Risk</h3>



Market risk for individual investors refers to the potential for price decreases in investments. This can be due to external factors, such as interest rates being increased by the Federal government. It could also be due to internal factors, like a company that has a bad earnings report.&nbsp;



An easy example for an investor would be the stock market dropping after <a href="https://www.usatoday.com/story/money/markets/2025/04/02/stocks-trump-tariffs/82767450007/" target="_blank" rel="noreferrer noopener">Donald Trump announced tariffs on imports from the U.S.’s trading partners</a>.&nbsp;



From a business standpoint, market risk refers to how the environment your business operates in is subject to changes that could threaten your profits. A prime example of this is ecommerce businesses like Amazon reducing brick-and-mortar shopping stores’ clientele.&nbsp;



<h3 class="wp-block-heading" id="h-credit-risk">Credit Risk</h3>



Credit risk refers to the potential for a business partner or loanee to not meet their financial obligation to repay money. For individuals, an example of this would be loaning money to a friend that is never repaid.&nbsp;



For businesses, especially banks, credit risk is the chance that a borrower does not pay back their loan. This is also known as defaulting.&nbsp;



<h3 class="wp-block-heading" id="h-liquidity-risk">Liquidity Risk</h3>



Liquidity refers to how quickly—or easily—an investment can be sold (i.e. converted into cash) without affecting its price. Liquidity risk, broadly speaking, is the potential for a business or individual to not be able to sell an investment or asset and have their cash flow interrupted.&nbsp;



From a business standpoint, an example of liquidity risk would be a company holding assets that are difficult to be sold, such as obsolete equipment or technology. If this company needed cash quickly to pay off debts, they could be at risk of not being able to access cash due to a failure to liquidate or sell its assets.&nbsp;



Individuals face liquidity risk when they purchase investments that do not have a high transaction volume or are difficult to sell. A simple example is purchasing a certificate of deposit. While you get a guaranteed return, you lock your money in (unless you pay a penalty or forfeit earned interest). This means that you increase your liquidity risk should you need that money in the short-term.



<h3 class="wp-block-heading" id="h-operational-risk">Operational Risk</h3>



Operational risk is only present with businesses. It refers to the potential for a business venture to fail or have its operations hampered. This could be due to a number of factors such as fraud, mismanagement, poor business design or the success of competing businesses in the area.&nbsp;



<h3 class="wp-block-heading" id="h-inflation-risk">Inflation Risk</h3>



The increase of prices for goods and services affects both businesses and consumers alike, and its risk can be felt in many different ways.&nbsp;



For consumers, inflation can erode your purchasing power with cash. It can also reduce investment returns. There’s a risk that comes with having cash and investments simply due to the fact that prices can increase.&nbsp;



For businesses, rising costs can affect their ability to purchase essential goods or services necessary to keep their business functioning. This can bottleneck a business’ ability to generate cash and potentially increase operational risk as well.



<h2 class="wp-block-heading" id="h-financial-risk-assessment-how-to-evaluate-your-risks">Financial Risk Assessment: How to Evaluate Your Risks</h2>



Often it’s easy to identify certain financial risks. If you hold a large amount of credit card debt, that’s a clear risk. Or, if your business only has two clients, that’s an obvious risk to your profits. But evaluating financial risk to prioritize which ones to mitigate it is a bit more difficult.&nbsp;



<h3 class="wp-block-heading" id="h-scenario-analysis-nbsp">Scenario Analysis&nbsp;</h3>



One method is to ask a series of questions to determine the impact of a financial risk. If the impact of a risk is great and it is difficult to deal with once it occurs, it should probably be labelled as a priority. This risk assessment tool is known as scenario analysis. Here are some questions you can use to brainstorm.&nbsp;



<ol class="wp-block-list">
<li>What are the chances of this financial risk occurring?</li>



<li>If it occurs, how much of an impact would it have on the business (or my personal finances)?</li>



<li>If this risk impacts the business or my personal finances, what steps can we/I take to recover from&nbsp; it?</li>



<li>What can the I or the business do to prevent this risk or prepare in advance of the risk occurring?</li>
</ol>



<h3 class="wp-block-heading" id="h-value-at-risk-var-assessment">Value-at-Risk (VaR) Assessment</h3>



Another common risk assessment tool used to evaluate financial risks is the value-at-risk (VaR) metric. This tool measures the potential loss in an investment position over a period of time.&nbsp;



For example, let’s say you were thinking of buying stocks in a public company. One way of determining the VaR of that stock is to look at its historical returns and losses over a specific time period that matches your investment timeline. You would then measure how often that stock performed poorly in that timeline and if you are comfortable with that potential “worst case scenario.” Keep in mind that is a simplification of one way to calculate VaR.&nbsp;



<h3 class="wp-block-heading" id="h-variance-analysis-nbsp">Variance Analysis&nbsp;</h3>



<a href="https://www.bill.com/learning/variance-analysis#:~:text=Overhead%20variance%20analysis%20evaluates%20differences,variance:%20Differences%20in%20fixed%20expenses." target="_blank" rel="noreferrer noopener">Variance analysis</a> is another method that is commonly used by businesses to see areas that are higher risk based on gaps and past performance. It might include revenue, materials, production, labor and overhead. This type of can help protect against a future lack of cash flow.&nbsp;



<h3 class="wp-block-heading" id="h-regression-analysis-nbsp">Regression Analysis&nbsp;</h3>



The <a href="https://corporatefinanceinstitute.com/resources/data-science/regression-analysis/" target="_blank" rel="noreferrer noopener">regression analysis</a> model can help determine the relationship between variables and help predict future financial relationships. This is a more advanced method that involves more complex statistical data sets. It might be used for financial forecasting or assessing the volatility of stocks.&nbsp;



<h3 class="wp-block-heading" id="h-financial-risk-assessment-software-tools-nbsp">Financial Risk Assessment Software Tools&nbsp;</h3>



For businesses or more advanced financial risk analysis needs, there are also a number of <a href="https://savvycomsoftware.com/blog/best-financial-risk-management-software/" target="_blank" rel="noreferrer noopener">software programs that can help measure financial risk</a>. These are especially pertinent to finance industries and investors. These tools can often provide analysis, reporting, monitoring and even audits&nbsp;&nbsp;



Regardless of what type of risk assessment tool or financial risk analysis methods you use, understanding the type and number of risks you face before making a financial decision is critical.&nbsp;



<h2 class="wp-block-heading" id="h-financial-risk-management-key-strategies-for-individuals-and-businesses">Financial Risk Management: Key Strategies for Individuals and Businesses</h2>



Seeing all the different types of financial risks can feel overwhelming. How can you avoid all of those different financial pitfalls? The key is to find strategies that mitigate or reduce your risk exposure.&nbsp;



<h3 class="wp-block-heading" id="h-mitigating-financial-risk-for-individuals-nbsp">Mitigating Financial Risk for Individuals&nbsp;</h3>



Some key <a href="https://successcom.wpenginepowered.com/risk-management-strategies/">risk management strategies</a> for individuals include: 



<ul class="wp-block-list">
<li>Proper budgeting: Keeping track of your expenses and ensuring you have enough cash flow to cover them is a simple way to reduce your liquidity risk. It can also help you repay your debts so you can focus on using your money for more lucrative opportunities, such as investing in stocks or bonds.&nbsp;</li>



<li>Managing debt: Learning how to manage and repay your debts can give you more access to cash in the long run: instead of paying into an overdue credit card, you can have access to that money in your account. In some cases, such as when you start a <a href="https://successcom.wpenginepowered.com/debt-management-plans-and-how-they-work/">debt management plan</a>, you can reduce your debts and lower your corresponding credit risk in the eyes of banks and other lenders.&nbsp;</li>



<li>Increase savings: Building up your emergency savings to around three- to six-months worth of expenses can significantly decrease your financial risk. If you face unexpected expenses, rather than taking out an emergency loan you can pull the money from your nest-egg.&nbsp;</li>



<li>Adding insurance: Whether it’s health, life, disability or property insurance, having a plan in place to protect you and your loved ones is always a prudent risk-reduction technique. This can ensure your assets are protected in the event of a tragedy and that your family can continue to financially operate.&nbsp;</li>
</ul>



<h3 class="wp-block-heading" id="h-reducing-financial-risk-for-businesses">Reducing Financial Risk for Businesses</h3>



Business risk management strategies are similar to those for individuals, but they can be more complex. Some common strategies include:&nbsp;



<ul class="wp-block-list">
<li>Diversify investments/income: Creating additional streams of income or investment types in a corporate portfolio can reduce financial risk that comes with offering only one type of good or service. Diversification also applies to clients. Where possible, do not rely on a small number of clients to generate profits, as market changes or negative economic developments can quickly disrupt your profits if one or two clients leave.</li>



<li>Create a risk management plan: Writing up a risk management plan is a clear step to aim to reduce risks—it helps your organization become more aware of them. A financial risk management plan would include how your company assesses, identifies and reduces financial risks.&nbsp;</li>



<li>Create a contingency plan: Sometimes financial risk cannot be avoided and consequences follow. Creating a contingency plan for if a financial risk occurs can help you navigate a risk and reduce its effect. This could be having a list of potential vendors to contact in case a supplier falls through, for example.&nbsp;</li>



<li>Purchase insurance: Insurance is a cornerstone of proper financial risk mitigation. While professional and general liability insurance are typically enough for some businesses, it’s important you review your company’s individual risks to see if additional coverage would be beneficial.&nbsp;</li>
</ul>



<h2 class="wp-block-heading" id="h-why-identifying-financial-risk-is-essential">Why Identifying Financial Risk Is Essential</h2>



Identifying risks is a normal part of living wisely, and the same principle should be applied to financial decisions. Whether you’re an individual investor or a business owner with hundreds of employees and thousands of decisions to make, understanding and controlling financial risk will lead to better financial outcomes time and time again.&nbsp;



Photo by insta_photos/Shutterstock.

Brett Surbey

There are multiple types of financial risks you should be aware of. Learn about their respective financial risk management strategies.

Financial risk is the possibility of losing money from business or investments. There are five major types of financial risk. These include market risk, | SUCCESS

The 5 Major Types of Financial Risk You Need to Know About

The 5 Major Types of Financial Risk | SUCCESS

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Maria Mantas

<a href="https://tomocredit.com/" target="_blank" rel="noreferrer noopener">TomoCredit</a> co-founder and CEO Kristy Kim knew she was going to be an entrepreneur since she was 10 or 11 years old—but things didn’t fall into place until she attempted to buy her first vehicle after college. “I would say the pivotal experience that led me to Tomo... was [that] I wanted to buy my first car while working as an investment banker in San Francisco,” she says.



Kim, a first-generation Korean immigrant who graduated from the University of California, Berkeley, applied for an auto loan at a Lexus dealership and was rejected right away. After struggling to figure out why and where to go for answers, Kim eventually realized it was because she had no credit history in the United States.



“I am well educated, worked hard to get a job and got a job, and I was making a six-figure income,” she says. “I did all the right things as an immigrant I was told to do. And then here I am not having [any] credit history in the U.S., so I am getting rejected within seconds of applying for an auto loan.”



Kim realized she wasn’t alone: So many students, immigrants, women and other members of marginalized communities struggle to secure leases for apartments, make big purchases such as cars or get approved for mortgages due to their lack of credit history or low credit score. In 2018, she founded TomoCredit in hopes of helping others understand and improve their <a href="https://successcom.wpenginepowered.com/financial-wellness-journey-for-lasting-financial-well-being/">financial wellness</a>.







TomoCredit offers a credit card that’s designed to help users build their <a href="https://successcom.wpenginepowered.com/how-to-improve-your-credit-score/">credit score</a> as quickly as possible and receives a small fee from merchants for every purchase made with the card. To apply for it, all individuals need is a valid Social Security number or individual taxpayer identification number. TomoCredit uses alternative data sources such as bank account information to process card applications (so a traditional credit score isn’t necessary) and helps users build their scores using a weekly autopay option.



The credit card is built on Kim’s realization that a wealth of transaction records detailing spending habits exists in individuals’ bank account summaries—data that might make them credit-worthy. To launch TomoCredit, Kim found an engineer to analyze the formatting of bank account data and eventually zero in on patterns related to account balances with the goal of training an underwriting model, a structured process used by lenders, insurers and investors to evaluate and assess the risk associated with providing financing and determining the terms and conditions of transactions.



Once it gained momentum and knew how to approach the datasets, Kim shared the findings with risk managers at banks such as Citibank and Wells Fargo and asked if it was valuable for helping individuals gain access to credit even if they don’t have any credit history. Because many big banks are set in their ways and have processes that benefit the broader population, she knew starting her own company would be the only way to provide the best service to the overlooked communities she wanted to serve.



“I have a best shot at being the A-plus service for the segment of consumers who don’t have good credit or a good credit score but good cash flow and want to get help on how to improve their credit,” she says.



Since the company started, it has evolved to offer memberships that consumers can choose based on their needs and also has an AI-powered credit assistant that provides TomoScores. The cash flow-based credit score helps businesses evaluate the creditworthiness of borrowers who lack a traditional credit score.



“Whether it is paying off your credit card or researching your auto loan interest rate, come to us because we can offer you more personalized advice…. Unlike other companies, we’ve been training our underwriting model over the past six years with 6 billion-plus transaction data,” Kim says. “We’ve been training our model to give you personalized [financial] advice based on your own income level and own spending patterns.”



Every week, the TomoCredit team chats with about 50 customers over the phone to gather feedback about what other features it can add to help them reach <a href="https://successcom.wpenginepowered.com/short-term-financial-goals/">financial goals</a>. (For example, a user might request to dispute credit report errors via their online dashboard.) In the future, Kim hopes to continuously provide more tools and resources for customers and become their long-term “financial co-pilots”—rather than just a short-term solution.



While TomoCredit continues to innovate, Kim says the company still follows the same mission it started with, which her staff is happy to remind her of when things get stressful. “It’s not about one single feature or one single business model, one unhappy customer, one happy customer,” she says. “Eventually, we are doing this because we believe that the market and the credit system will eventually change in the way that we desire.”



Even though change to the credit system is slow, it is happening, Kim says. The evidence is in more acknowledgment of better underwriting or the need to use more AI and datasets. “My team is like, ‘Kristy, you know what? Maybe you don’t feel it every day, but definitely things are moving in the right direction.’”



Kim thinks that increasing credit access will remain a benefit to America’s economy despite any changes in the political system, thanks to capitalism and lenders’ appetite for expanding their businesses. “No matter who’s in the White House or where we are in the political environment, increasing credit access to consumers is always important and then it benefits everybody,” she says. “It not just benefits the consumers, it benefits lenders, too.”&nbsp;



<h2 class="wp-block-heading" id="h-have-bad-credit">Have bad credit?</h2>



Here’s Kim’s advice.



Don’t be afraid to know where you stand. Everyone has to start somewhere! “Sometimes people get scared or overwhelmed to even start because they feel like, ‘Oh, my stuff is terrible,’” she says. “So, it doesn’t give them joy to look at it.”



Find the right financial partner. Kim says some customers are more comfortable sharing their data with a company that uses an AI model like TomoCredit, which they find less judgmental. “We really want to be a place [where] there’s no stigma,” she says.



Be patient. Your credit score won’t improve overnight. She says that while many times it feels like you’re not making progress, there’s beauty in continuing to move forward.



“Then later, you see that you made a big difference,” she says.



Photo courtesy of Kristy Kim. This article originally appeared in the<a href="https://successcom.wpenginepowered.com/subscriptions/"> September/October 2025 issue</a> of SUCCESS® magazine.

Kristy Kim built TomoCredit to fix a broken credit system, helping overlooked communities gain access through cash flow–based approval.

Kristy Kim built TomoCredit to fix a broken credit system, helping overlooked communities gain access through cash flow–based approval. | SUCCESS

How Kristy Kim's TomoCredit Is Changing Credit Access

How Kristy Kim&#8217;s TomoCredit Is Changing Credit Access

How Kristy Kim’s TomoCredit Is Changing Credit Access | SUCCESS

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Patricia Kaowthumrong is a Colorado-based freelance writer who covers food, travel, culture and other lifestyle topics. A proud Thai American, she loves seeking out stories that foster unity and understanding.

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Patricia Kaowthumrong

mother helping daughter sitting on lap putting money in piggy bank

Morgan Housel’s book, <a href="https://amzn.to/43MMYNk" target="_blank" rel="noreferrer noopener">The Psychology of Money</a>, was a welcome departure from <a href="https://successcom.wpenginepowered.com/bestsellers/?taxonomy=money&amp;date=2025-02-01">money books</a> that simply advised you on how to grow wealth. The bestselling book instead addresses how we think about money and how it affects our lives.&nbsp;



In his forthcoming book, <a href="https://amzn.to/4khblsy" target="_blank" rel="noreferrer noopener">The Art of Spending Money</a>, Housel again uses narrative storytelling to offer tangible lessons on how the way we spend money can focus on enriching our lives instead of our bank accounts.&nbsp;







We spoke with Housel about how the way we spend our money directly impacts our happiness and how to spend for a richer life.&nbsp;



This interview has been edited for length and clarity.&nbsp;



SUCCESS: In the introduction of the book, you differentiate between being good at making money and the ability to turn it into a meaningful, better life. What do you mean by that?&nbsp;



Morgan Housel: One of the things that I wrote about in the book is that some people who I’ve met—and I’m sure you’ve met—and other people who don’t make a lot of money, they might make very little money, and they're totally happy. They’re content. They love going for walks and playing Legos with their kids and gardening and watching the sunset.&nbsp;



And then some very, very monstrously wealthy people who I’ve met who are, by every metric, less happy. I think that’s just biology that the majority of very wealthy people have to work 100 hours a week for their entire life. They cannot stop. They cannot retire. It’s completely antithetical to how their brain works.&nbsp;



But this isn’t to say that money can’t make you happier. It absolutely can, but I think we massively overestimate in society the impact that it’s going to have. The people who use money wisely are the ones who use it as a tool to leverage things that will actually make them happier, like friends and family and health.



I use the idea in the book: Can a big house make you happier? And the answer is yes, if that house makes it easier for you to spend time with friends and family, and the friends and family in that situation are actually what’s making you happier. So it’s an indirect <a href="https://successcom.wpenginepowered.com/finding-happiness-mindset-shifts-to-change-your-life/">path toward happiness</a>.&nbsp;



S: You mentioned the role of subjectivity in how we assess the worth of things. For example, drinking a glass of water when you’re thirsty is going to be better than a cocktail from a Michelin-starred restaurant. Tell me about that.&nbsp;



MH: If you're eating Michelin-starred food three meals a day, compare that to going on a long hike. Let's say you hike 10 miles, you’re done with the hike and you’re famished. You’re so hungry, and then you go to Taco Bell. That Taco Bell burrito tastes better than the Michelin-starred meal.&nbsp;



S: You gave the example of a couple who was being evicted and their comment that they did not have the luxury of thinking about the future. Tell me how readers can use empathy to spend their own money with purpose.&nbsp;



MH: In The Psychology of Money, the phrase that I used was “no one’s crazy.” People make very bad decisions. People make regrettable decisions; people make uninformed decisions. But every financial decision that people make makes sense to them in that given moment.&nbsp;



It’s very easy for me and you, and a lot of other people, to look at someone who is being evicted because they couldn’t save or spent all their money on lottery tickets or blew their money gambling, like whatever it might be, and say, “You idiot. What were you thinking? How could you have possibly done that?”&nbsp;



And I think the vast majority of the time, you might have done the same thing or I might have done the same thing if we were in their shoes. If you’re paycheck to paycheck you might believe anything if that gives you a little bit of hope.



S: You talk about how saving for the future instead of spending money creates independence. Give me a brief summary of the levels of independence and why small saving does actually matter.&nbsp;



MH: I think independence is the greatest <a href="https://successcom.wpenginepowered.com/long-term-financial-goals/">financial goal</a>. The greatest use of money is to achieve independence. And so many people, if you tell them that, will say, “I'm not independent. Financial independence means I don’t have to work anymore.”&nbsp;



If you think of independence as black and white, like either you have to work or you don’t, then it seems completely out of reach for 99% of people. But all independence is on a spectrum, and every dollar that you save is a piece of your future that you now own.&nbsp;



Let’s just say you’re able to save $1,000, and then you get laid off from your job. If having that $1,000 in savings means you can spend one week looking for a new job instead of having to take the first job that you can find tomorrow because you have no savings, that’s a level of independence that you had that you didn’t have before.&nbsp;



S: You talk about how spending has an impact on kids. As a father, what are the top three things you would like to leave for your kids?



Like any parent, I just want them to be happy. It doesn’t matter to me if they’re successful. I just want them to be happy. And I would say, try to use money as a tool to make you happier, rather than as a yardstick to measure your social progress.



Photo by Ground Picture/Shutterstock

Author Morgan Housel shares how to spend money in ways that boost happiness—like buying time, not things. Learn to spend with purpose.

Author Morgan Housel shares how to spend money in ways that boost happiness—like buying time, not things. Learn to spend with purpose. | SUCCESS

Money Can Buy You Happiness… But Not the Way You Think

How to Spend Money for Happiness: A Better Approach | SUCCESS

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Nia Springer-Norris is a journalist, educator and web developer in the Chicago area. She writes and teaches about human-machine communication, social media culture and books. You can find her everywhere as @nianorriswrites

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Nia Springer-Norris

student in row with friends for university or college ceremony

The truth is, <a href="https://successcom.wpenginepowered.com/saving-for-college-2024/">college costs</a> are out of control. The days of being able to pay for school with a part-time job and a little hard work are long behind us.&nbsp;



For instance, when I first attended the University of Kansas in 2011, my tuition was <a href="https://data.kansasregents.gov/public_doc/reports/databook/Section%20II/db_23_2011.pdf" target="_blank" rel="noreferrer noopener">over $8,000</a>. If I were to enroll this fall? It would cost a whopping <a href="https://financialaid.ku.edu/estimated-cost-attendance" target="_blank" rel="noreferrer noopener">$11,236</a> for tuition alone. (That doesn’t include other costs like textbooks, meal plans or living arrangements.) It’s no wonder that <a href="https://www.cnbc.com/2025/03/17/average-student-debt-balance-in-every-state.html#:~:text=Nearly%2043%20million%20Americans%20owe,to%20Department%20of%20Education%20data." target="_blank" rel="noreferrer noopener">nearly 43 million Americans</a> currently owe a collective $1.6 trillion in <a href="https://successcom.wpenginepowered.com/student-loan-repayment-tips/">student loan debt</a>.



While there are systematic changes needed to fully address the ever-increasing costs, that doesn’t mean that there aren’t things students and parents can do to <a href="https://successcom.wpenginepowered.com/how-to-finance-higher-education-on-a-budget/">help ease the burden</a>. Scholarships are an often-untapped way to help pay what you can upfront and avoid the high interest rates of loans later on. Scholarships are considered gifts, and unlike loans, are not paid back.&nbsp;



As someone who managed to pay for the majority of their college education with scholarships, I became an accidental expert on this often-confusing process. I spent a year and a half applying to as many scholarships as I could (more than 100!), and by the time I graduated high school, I had accumulated more scholarships than any other student in my graduating class. Here’s what I learned.&nbsp;







<h1 class="wp-block-heading" id="h-when-to-start-looking-for-scholarships">When to start looking for scholarships</h1>



Fall to early spring: A lot of scholarships have award ceremonies that coincide with graduations and other end-of-year celebrations, so the decisions must be made before this. There are some scholarships with application deadlines that occur over the summer between junior and senior year, but they aren’t as common in my experience.&nbsp;



Junior/Senior year of high school: While there are scholarships available that apply to any student, incoming college freshmen are especially encouraged to apply. This means you should be applying during your junior and senior year of high school to maximize your options.&nbsp;



<h1 class="wp-block-heading" id="h-where-to-find-scholarships">Where to find scholarships</h1>



When looking for scholarships, start with the <a href="https://studentaid.gov/understand-aid/types/scholarships" target="_blank" rel="noreferrer noopener">Federal Student Aid’s resources</a>, reach out to the financial aid office of the schools where you applied, and talk to your high school counselor. These avenues will help you identify any obvious or well-known scholarships that you’re qualified for.&nbsp;



<h2 class="wp-block-heading" id="h-check-your-local-community">Check your local community</h2>



Some towns, cities, counties and states will have scholarships set aside specifically for applicants who live there. They can usually be found by searching the websites for the local government. School boards, school districts, board of regents and more can also offer their own scholarships.&nbsp;



If you or your family are a part of any clubs, volunteer organizations, religious groups, sports or other community-based activities, there’s a good chance there are scholarships specific to members of these groups.&nbsp;



<h2 class="wp-block-heading" id="h-look-for-identity-based-scholarships">Look for identity-based scholarships</h2>



Some scholarships are created specifically to provide opportunities to those who have historically had greater barriers to attending a university.&nbsp;



For example, some are set aside for those with marginalized identities (such as women, LGBTQ+, people of color, disabled or neurodiverse people, etc). Others are held for nontraditional students and those who are the first to attend college within their family.&nbsp;&nbsp;



<h2 class="wp-block-heading" id="h-scholarships-based-on-profession-or-major">Scholarships based on profession or major</h2>



Some scholarships are provided to help encourage students to pursue specific career paths (for instance, for technology, teaching or journalism). If you’re anything like me, this might feel like a lot of pressure. After all, what if you change your mind?&nbsp;



The good news is, many of these scholarships are awarded with the knowledge that there’s a distinct possibility recipients may change their course of study. Many students change their major once they’re attending college, and it’s not ungrateful to do so even with a major or profession-based scholarship. Just be sure that you’re serious about the course of study to begin with, and make sure to double check you won’t lose your scholarship if you do decide to switch.&nbsp;&nbsp;



<h2 class="wp-block-heading" id="h-scholarship-websites">Scholarship websites</h2>



There are a ton of resources online for scholarships these days, so it can be overwhelming to know where to start looking. There are plenty of free resources available, so don’t feel like you need to pay for any premium services. Be sure to vet a site thoroughly before providing any personal information, and as with most things on the internet, if it sounds too good to be true, it probably is.&nbsp;&nbsp;



The <a href="https://www.careeronestop.org/toolkit/training/find-scholarships.aspx?curPage=1&amp;awardTypefilter=Scholarship" target="_blank" rel="noreferrer noopener">U.S. Department of Labor</a> and <a href="https://bigfuture.collegeboard.org/scholarship-search" target="_blank" rel="noreferrer noopener">College Board</a> are both good places to start. You can also find a lot of <a href="https://www.usnews.com/education/best-colleges/articles/websites-to-kick-off-your-scholarship-search" target="_blank" rel="noreferrer noopener">lists</a> of other databases to keep your momentum going. 



<h1 class="wp-block-heading" id="h-your-time-is-finite-make-it-count">Your time is finite—make it count</h1>



During my junior year of high school, my mother made me a binder full of every scholarship she came across that I might be vaguely qualified for. She organized the whole thing by due date and left it sitting on my desk to go through between activities. It was immensely helpful, but also served as a visual reminder that no matter how hard or long I worked on applications, I’d never be able to apply to everything.&nbsp;



Your time matters, and the end of high school can be incredibly busy already. It’s vital to prioritize which scholarships you apply for and ensure they’re worth the minutes (or hours) you spend doing so.&nbsp;



When picking which scholarships are most worth your time, consider these three factors:&nbsp;



<ol class="wp-block-list">
<li>How much time does it take to apply?&nbsp;</li>



<li>How many applicants are they likely to get?&nbsp;</li>



<li>How much money would you get if you won?&nbsp;</li>
</ol>



It might feel intuitive to apply for only the biggest scholarship prizes, but the reality is, those will also be the most competitive. Despite my months of practice applying—and even getting close a few times by becoming a finalist in the running for certain scholarships—I never won any truly lucrative scholarships. Instead, I paid for school with a broader collection of smaller scholarships.&nbsp;



Remember, even if you don’t manage to secure enough scholarships to cover your college tuition and expenses entirely, every scholarship you get means paying back that much less in student loans later on.&nbsp;



Photo by PeopleImages.com - Yuri A/Shutterstock

I applied to over 100 scholarships and graduated debt-free. Here’s how I found them, prioritized my time and made each application count.

I applied to over 100 scholarships and graduated debt-free. Here’s how I found them, prioritized my time and made each application count. | SUCCESS

I Graduated College Debt-Free Thanks to Scholarships—Here’s How I Did It

How I Graduated College Debt-Free With Scholarships | SUCCESS

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Anna Wenner is a freelance writer based in the Kansas City Metro. Her work has appeared in The New York Times’ Wirecutter, USA Today, Lovepop, AARP, and more.

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Anna Wenner

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Sandi Schwartz

The YNAB app simplifies budgeting and helps you manage your finances. Learn how this powerful tool can improve your financial health.

The YNAB app simplifies budgeting and helps you manage your finances more effectively. Learn how this powerful tool can improve your financial health. | SUCCESS

YNAB App Review: How This Tool Helps You Take Control of Your Budget

YNAB App Review: Take Control of Your Finances | SUCCESS

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Abebola Ayinde

A financial planner meets with a client to discuss their financial goals

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Managing your personal finances well takes time and energy—sometimes more than we can spare. Sure, we can create a <a href="https://successcom.wpenginepowered.com/financial-planning-checklist/">financial planning checklist</a> or learn the basics of investing, but sometimes getting into the weeds is too much of a time-sink. So, how can you make the most of your finances if you’re in a knowledge or time rut?&nbsp;



Hiring a financial advisor is a prudent way to have an expert look over your financial situation and make recommendations, balance your stock portfolio or simply guide your financial actions towards better decisions.&nbsp;



If you’re thinking of hiring a financial advisor, understanding their role is the first step in deciding to work with one. We’ll detail what a personal financial advisor does, questions to ask, how to pick one and much more below.







<h2 class="wp-block-heading" id="h-what-is-a-financial-advisor">What Is a Financial Advisor?</h2>



A financial advisor is a professional who is trained to help individuals, families and/or businesses make the best financial choices they can given their situation. This typically means offering advice on investments, mortgages, financial planning, risk tolerance levels and big financial decisions.&nbsp;



A financial advisor also recommends certain investments based on your life goals, familial (e.g. married, single) and financial situations. They can also help with estate planning and budgeting. In short, a financial planner is a financial educator, guide and accountability partner.&nbsp;



Although the term financial advisor may sound like a catch-all phrase, some specialize in different areas such as financial risk management or retirement strategies. Financial advisors typically work with businesses, individuals and families and may have asset requirements for you to work with them.&nbsp;



<h3 class="wp-block-heading" id="h-financial-advisor-vs-financial-planner-what-s-the-difference">Financial Advisor vs. Financial Planner: What’s the Difference?</h3>



All financial planners are financial advisors, but not all financial advisors are financial planners.&nbsp;



A financial advisor is someone who, broadly speaking, helps you manage your money. This is done by buying and selling investments for you, offering advice on your financial health or creating estate or tax plans. Someone can only be called a financial advisor if they have passed the Series 65 Exam administered by <a href="https://www.finra.org/registration-exams-ce/qualification-exams/series65" target="_blank" rel="noreferrer noopener">FINRA</a>. Though a financial advisor is a broad role, individual advisors may come from different backgrounds or have different specialties, such as insurance or mortgage advice. 



A financial planner, however, is someone who helps consumers and businesses create and follow through on financial strategies to help them accomplish their goals. These could be goals focused on saving, education, retirement, or tax planning, among others. It’s important to note that FINRA states that almost anyone can call themselves a financial planner, and they come from a variety of backgrounds. That said, a common designation to watch out for is the Certified Financial Planner (CFP) marker. Someone with this designation has passed the CFP Exam and meets other rigorous qualifications.&nbsp;



When choosing between the two, keep in mind that there are instances where a financial planner or a financial advisor would be the better hire. Generally, if you need assistance with creating financial goals and coming up with a financial plan, use a financial planner. If you want advice on investments, to have someone manage your portfolio or to advise you on insurance or mortgage decisions and the like, a financial advisor may be a better fit.&nbsp;



<h2 class="wp-block-heading" id="h-key-financial-advisor-duties-and-services">Key Financial Advisor Duties and Services</h2>



What can financial advisors do for you? Now that we’ve outlined the role of a financial advisor, let’s review their core responsibilities and duties.&nbsp;



<h3 class="wp-block-heading" id="h-manage-your-investments-nbsp">Manage Your Investments&nbsp;</h3>



A financial advisor can help you manage your investments from start to finish. They will typically ask questions about your risk tolerance level to get an idea of what types of investments (e.g. stocks, bonds, mutual funds) fit your profile. They’ll also compare these investment types to your overall goals to make sure they line up.&nbsp;



Once they’ve created a portfolio for you, they will continually manage it to meet your goals and give you advice during turbulent market periods. An advisor also rebalances your portfolio so you don’t incur too much—or not enough—risk based on your risk profile.&nbsp;



<h3 class="wp-block-heading" id="h-help-minimize-your-tax-liabilities">Help Minimize Your Tax Liabilities</h3>



Because an advisor has a detailed picture of your entire financial life, they can provide tax advice to help you or your business reduce your tax bill. Some advisors may also file your tax returns for you, too. Note that financial advisors who offer tax-related services typically have tax professional designations such as Certified Public Accountant or Enrolled Agent.&nbsp;



<h3 class="wp-block-heading" id="h-provide-retirement-planning-advice-nbsp">Provide Retirement Planning Advice&nbsp;</h3>



By analyzing your income levels, retirement goals, spending patterns, savings and other financial markets, an advisor can help you plan for retirement in a way that suits your needs. They’ll also regularly meet with you to update your retirement plan as your life goes on or if your priorities change.&nbsp;



<h3 class="wp-block-heading" id="h-help-with-estate-planning">Help With Estate Planning</h3>



Usually working with an estate attorney, a financial advisor can help you create an estate plan that fulfills your wishes and takes care of those you love most when you’re gone. In practice, this could mean assisting with the creation of a living trust, preparing payable on death forms for insurance or updating your beneficiaries on your insurance plans.&nbsp;



<h3 class="wp-block-heading" id="h-assist-you-in-paying-off-debt">Assist You in Paying off Debt</h3>



In addition to helping you save or invest, a financial planner can also help you pay off and manage your debt. This is done by creating a debt payment plan and potentially restructuring the debts you currently have. In some cases, they may advise you to start a <a href="https://successcom.wpenginepowered.com/debt-management-plans-and-how-they-work/">debt management plan</a>.&nbsp;



<h3 class="wp-block-heading" id="h-help-create-a-budget">Help Create a Budget</h3>



While you can create a budget on your own, an advisor can help you see patterns in your spending habits, allowing you to focus on reducing unnecessary costs. They’ll also create a budget that matches your overall financial goals and objectives.&nbsp;



<h2 class="wp-block-heading" id="h-how-much-does-a-financial-advisor-cost">How Much Does a Financial Advisor Cost?</h2>



When it comes to <a href="https://successcom.wpenginepowered.com/how-to-choose-a-financial-advisor/">choosing a financial advisor</a>, cost should be one of the factors you take into account. Financial advisors are paid in multiple ways, which can seem confusing at first. Here’s a breakdown of how a financial advisor may charge you and their general costs.&nbsp;



<ul class="wp-block-list">
<li>Assets under management (AUM) fee: An AUM fee is a percentage of the total value of the investments your advisor manages for you, charged on an annual basis. A typical AUM fee is anywhere from 0.6% to 1.2% and may be higher depending on your situation. For example, if you have $100,000 of investments with an advisor that charges a 1% AUM fee, you would pay $1,000 per year.&nbsp;</li>



<li>Hourly rates: Advisors may charge an hourly rate of $100 to $400 an hour depending on the type of work required.&nbsp;</li>



<li>Flat fees: For work that is easier for an advisor to estimate, they may use flat fees to charge clients. For example, an advisor might charge $1,000 for a simple budgeting plan or savings plan. But a comprehensive retirement and estate plan could be closer to $2,400.&nbsp;</li>



<li>Commission-based fees: Some advisors may not have any fees upfront, but instead earn a commission on the types of products they sell (e.g. insurance, certain mutual funds).&nbsp;</li>
</ul>



It’s important to note that advisors usually operate under two different fee structures: fee-only and fee-based. Fee-only advisors do not charge commissions on any products they recommend as part of their services, but they do charge fees like other ones we noted above.



Fee-based advisors do earn a commission on the investments or products they recommend to you, potentially in addition to other fees such as their AUM or hourly rate.&nbsp;



<h2 class="wp-block-heading" id="h-how-to-find-a-financial-advisor">How to Find a Financial Advisor</h2>



When picking a financial advisor, it’s important you find someone you can trust first and foremost. After all, you don’t talk to just anyone about your finances, especially in great detail.&nbsp;



Finding a trustworthy advisor can be done in many different ways, but asking those around you who have used an advisor is usually a good first step. They can give you insights that online reviews and research sometimes cannot (e.g. how an advisor treats their clients).&nbsp;



You can also easily find an advisor online by searching through various associations, such as:&nbsp;



<ul class="wp-block-list">
<li><a href="https://www.napfa.org/" target="_blank" rel="noreferrer noopener">The National Association of Personal Financial Advisors (NAPFA)&nbsp;</a></li>



<li><a href="https://www.garrettplanningnetwork.com/" target="_blank" rel="noreferrer noopener">Garrett Planning Network</a></li>



<li><a href="https://www.xyplanningnetwork.com/" target="_blank" rel="noreferrer noopener">XY Planning Network</a></li>



<li><a href="https://www.acplanners.org/home" target="_blank" rel="noreferrer noopener">Alliance of Comprehensive Planners (ACP)</a>&nbsp;</li>
</ul>



Once you have an advisor in mind, make sure to check their background, history and any potential disciplinary actions with FINRA’s <a href="https://brokercheck.finra.org/" target="_blank" rel="noreferrer noopener">BrokerCheck</a>. This service can give you a quick peek into a broker’s practice.&nbsp;



<h3 class="wp-block-heading" id="h-fiduciary-vs-non-fiduciary-advisors">Fiduciary vs. non-fiduciary advisors</h3>



When deciding on an advisor to work with, make sure to ask them if they are a fiduciary advisor. A fiduciary is someone who is legally obligated to act in your best interests. While a non-fiduciary advisor may still recommend plans and investments that are a good choice, they are not bound to do so. In some cases, it’s better to go with a fiduciary as trust is baked into the relationship by a legal duty.&nbsp;



<h3 class="wp-block-heading" id="h-questions-to-ask-a-financial-advisor">Questions to Ask a Financial Advisor</h3>



A key part of finding the best financial advisor for your situation is the interview process. Here are some questions you can use to help steer you in the right direction. Remember, trust is critical when hiring anyone who advises you. If you have some reason not to trust a potential advisor before you hire them, that’s a red flag.&nbsp;



<ul class="wp-block-list">
<li>What services do you offer and how can they help me with my financial goals?</li>



<li>How do you charge for your services (fee-only or fee-based)?</li>



<li>Can you provide references or case studies of clients you’ve worked with?</li>



<li>What is your approach to financial planning and how do you make decisions?</li>



<li>Are you a fiduciary?&nbsp;</li>



<li>What are my total costs if I work with you?&nbsp;</li>



<li>What is your educational background?</li>



<li>Do you work with other experts, such as accountants, lawyers, etc.?&nbsp;</li>



<li>How often do you meet with your clients?&nbsp;</li>
</ul>



<h2 class="wp-block-heading" id="h-are-financial-advisors-worth-it">Are Financial Advisors Worth It?</h2>



If you’re wanting to level up your personal finances without doing the research, portfolio rebalancing, financial goal setting and retirement planning on your own, a financial advisor could be a good fit. While financial advisors do come with a cost, having professional guidance for the long term can pay dividends for years to come.&nbsp;



Photo by PeopleImages.com - Yuri A/Shutterstock.

What does a financial advisor do, exactly? Learn how a financial advisor can help you make the most of your money and when to hire one.

What does a financial advisor do, exactly? Learn how a financial advisor can help you make the most of your money and when to hire one. | SUCCESS

What Does a Financial Advisor Do and How Can They Help You Manage Your Finances?

What Does a Financial Advisor Do? | SUCCESS

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A group of students sitting on the steps of a college campus.

You might not even realize it, but somewhere along the way, the idea of choosing a college quietly morphed into choosing a <a href="https://successcom.wpenginepowered.com/brand-strategy-principles/">brand</a>.







The obsession with elite schools has hit a fever pitch. Ivy League institutions, for example, receive exceptionally high numbers of applications each year—even from students who may not have any intention of attending them. Why? Because prestige sells. It sells to our parents, to our peers, and most sneakily, to ourselves.



But if you're helping someone in your life, whether a younger sibling, a mentee, or even yourself, navigate the college decision process, it's worth asking: Is the goal to pick the right education, or just the right logo?



<h2 class="wp-block-heading" id="h-prestige-is-psychological">Prestige Is Psychological</h2>



Brands don't exist by accident. They're a psychological shortcut—our brain's way of saying, "This must be good, because it's familiar and admired." That same mechanism that makes you reach for the well-known tech brand or athletic shoe applies just as strongly to educational institutions.



We're wired for social validation. Attending a prestigious school delivers that quick dopamine hit when someone reacts with, "Wow, you got in there?" But the power of that validation often masks deeper considerations: actual program quality, learning environment and long-term compatibility. Family pressure, peer influence and social media only intensify this bias. A school's perceived status can quickly become more important than its actual fit for your goals.



<h2 class="wp-block-heading" id="h-what-actually-makes-a-college-right-for-you">What Actually Makes a College Right for You?</h2>



Let's refocus. Forget for a moment about rankings, prestige, or how impressive the school looks in your Instagram bio. Ask instead: What do I need from a college experience to thrive?



Start with program relevance. A school's name won't land you a job if it didn't prepare you for the field you want to enter. Whether it's business analytics, nursing or design, the curriculum should match your career interests and offer hands-on opportunities.



Then consider the learning environment. Do you benefit from small class sizes where professors know your name? Is mentorship available? Will you get real-world experience before graduation?



And don't ignore cultural fit. College isn't just an academic choice; it's a four-year environment that shapes your habits, values and identity. Are you building a life that feels authentic, or just one that looks good on paper?



<h2 class="wp-block-heading" id="h-prestige-doesn-t-guarantee-roi">Prestige Doesn't Guarantee ROI</h2>



It's time to get honest about return on investment. That shiny diploma from a brand-name school might come with six figures of <a href="https://successcom.wpenginepowered.com/saving-for-college-2024/">student loan debt</a>. Is that sustainable for you or your family?



Some of the most successful professionals you admire likely graduated from schools you've never heard of. Why? Because success has more to do with what you do during college than where you do it. Initiative, internships, connections and hustle all outweigh the logo on your sweatshirt.



Ask yourself this: If no one ever knew where I went to school, would I still want to go there?



<h2 class="wp-block-heading" id="h-cutting-through-the-hype">Cutting Through the Hype</h2>



To make a decision based on value instead of vanity, challenge yourself with better questions. There are many things to consider when choosing a college that go beyond name recognition.



<ol class="wp-block-list">
<li>Would I attend this school if no one else knew I went there?</li>



<li>Does this program prepare me for the job I actually want—not just a vague idea of success?</li>



<li>Do I feel comfortable and energized by the campus and community?</li>



<li>Will I have access to support systems like mentorship, tutoring or counseling?</li>



<li>Can I graduate without being buried in debt?</li>
</ol>



Use these questions to create your own value-driven checklist. Tour campuses not just for their brochures and buildings, but to observe interactions, sit in on classes, and talk with real students. Look beyond the marketing and into the experience itself.



<h2 class="wp-block-heading" id="h-redefining-what-success-looks-like">Redefining What Success Looks Like</h2>



Choosing a college shouldn't feel like picking a designer label. Rather, it should feel like choosing a launchpad. And launchpads come in all shapes and sizes. While some are big-name institutions, others are quietly powerful programs at schools that put student outcomes first.



If you define success for yourself, you're already ahead of the game. When prestige fades and real life begins, it's your growth, skills, and values that carry you — not the brand you once wore.



So make the choice that's right for you. Own your path. And don't worry if the name on your diploma doesn't make anyone's jaw drop. Your work, your mindset and your vision for your life will speak louder.



<a href="https://www.linkedin.com/in/joshuakruk/" target="_blank" rel="noreferrer noopener">Josh Kruk</a> is the Director of Digital Marketing at <a href="https://www.canisius.edu/" target="_blank" rel="noreferrer noopener">Canisius University</a>. With extensive experience in content strategy, website optimization and user experience (UX), he specializes in driving digital growth through data-driven marketing and SEO. Josh has led large-scale digital initiatives that enhance engagement, improve search visibility, and optimize user journeys. Passionate about innovation, he continuously refines digital experiences to maximize impact.



Photo from Prostock-studio/Shutterstock.com

Are you choosing a college for its name or for what truly aligns with your goals? Learn what makes a college right for you.

You might not even realize it, but somewhere along the way, the idea of choosing a college quietly morphed into choosing a brand. The obsession with elite | SUCCESS

Are You Choosing a College or Just a Brand?

Are You Choosing a College or Just a Brand? | SUCCESS

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Josh Kruk

Rob Edwards is a nationally recognized adviser who helps millionaire families navigate the complexities of their wealth. At Edwards Asset Management, he helps clients build thoughtful, long-lasting legacies—not just financial plans.



This interview has been edited for length and clarity.



SUCCESS+:  What exactly is wealth succession planning, and how is it different from just writing a will or naming beneficiaries?



Rob Edward: &nbsp;Wealth succession is about more than deciding who gets what. It’s your chance to shape your legacy intentionally and on your terms.



<a href="https://successcom.wpenginepowered.com/what-to-consider-when-making-a-will/">Wills</a> and naming beneficiaries are good practices, but they simply allocate assets. Wealth succession planning goes beyond this and helps craft a lasting legacy that can have a major impact on the people and causes you care about most.



For example, when you use a simple will or just name beneficiaries, you’re essentially handing your heirs money without much direction. <a href="https://successcom.wpenginepowered.com/future-ready-leadership-succession-planning/">Succession planning</a>, on the other hand, is still about passing on wealth—but with clear intent. You might set up a trust that specifies you’d like to help your children buy their first home, support their education or fund a business idea. That’s shaping a legacy, not just distributing assets.



S+:  At what point should someone start thinking about succession planning? Is there such a thing as “too early”?



RE: &nbsp;It’s never too early. The sooner you start, the more control and peace of mind you’ll have. People often think planning is all about the money, but it also helps avoid unnecessary stress and conflict down the road.



When people wait too long, the consequences can be both emotional and financial. I’ve seen adult siblings stop talking to each other because of misunderstandings around who gets what. These situations often lead to increased legal costs and taxes. But even more damaging is the emotional fallout—resentment, stress and, in some cases, family relationships that are never repaired.



S+: What are some common mistakes people make when planning to pass on their assets?



RE: &nbsp;People usually either wait too long, keep their plans a secret or assume everyone is on the same page about what’s most important. In my experience, clear and upfront communication beats complexity every time.



S+: How often do people delay planning because they think they’re “not wealthy enough”? What would you tell them?



RE: &nbsp;All the time. In fact, I’ve been hearing this more and more lately. My belief is that if you’ve built anything that you value, then you’re already “wealthy enough.” Who cares what your neighbor is doing or what social media says? Succession planning is about preserving your legacy and protecting your loved ones—not about living up to someone else’s standards.



S+: What does a solid, modern succession plan look like in 2025? Are there elements most people wouldn’t think to include?



RE: &nbsp;There is a lot of uncertainty with <a href="https://successcom.wpenginepowered.com/the-new-2025-tax-changes-explained/">tax laws</a> right now. It also seems that inflation may be with us for some time. On top of that, life is fickle and always changing—sometimes unexpectedly.



So, in my opinion, a solid succession plan would include tax-smart trusts, investments that can outpace inflation and clear guidelines for how assets are to be used.



To expand on that: A trust that is “tax-smart” might be designed to reduce taxes by spreading distributions out over time or including charitable giving. An “inflation-proof” investment is one that grows alongside inflation—helping preserve a family’s purchasing power. Assets that tend to perform well in inflationary environments include stocks, real estate and commodities.



S+: How do personal dynamics—like blended families or different financial values among heirs—factor into a well-thought-out plan?



RE: &nbsp;Family dynamics are usually the toughest part. A well-thought-out plan tackles these issues upfront in a clear, direct and honest way. Getting everyone on the same page today helps avoid conflict later.



For example, I recently worked with a client who remarried later in life, with adult children on both sides. We created a plan that openly discussed everyone’s expectations and then established separate trusts to honor each family’s priorities. This helped everyone feel heard from the start—and ideally, reduces tension down the road.



S+: What are some smart ways to set conditions around how money is used without creating resentment?



RE: &nbsp;Start your planning with your values and intentions—not control and ultimatums. With a strong moral foundation, your planning can help foster responsible stewardship rather than resentment.



One creative example I’ve seen came from a very entrepreneurial family. They added a “legacy match clause” to their trust. It stated that if their grandchildren earned money through internships or jobs, the family trust would match it dollar-for-dollar. I thought that was a clever way to reinforce the family’s work ethic while still providing support.



S+: What role do taxes play, and how can people minimize the tax burden for their heirs?



RE: &nbsp;Taxes are a huge consideration. They can’t be avoided, but they can be managed. And you don’t always need to jump through hoops to get the job done well.



Even straightforward strategies—like <a href="https://successcom.wpenginepowered.com/estate-planning-maximize-gift-tax-exemptions/">giving gifts</a> while you’re still alive, using trusts strategically and choosing tax-smart investments—can make a big difference. The key is to plan ahead and be intentional.



S+:  Who should someone speak to as they begin—do you need a whole team, or can one adviser help get things rolling?



RE: &nbsp;Start with someone you trust completely. Usually, there’s one adviser who really “gets” you and your family. That person can help you organize a team of specialists—estate lawyers, tax experts and more—when the time is right.



I started my career at a family office and saw firsthand how valuable it is to have multiple professional perspectives involved in the decision-making process. It helps ensure every base is covered.



S+: What’s one piece of advice you repeatedly give to shift mindsets about wealth transfer?



RE: &nbsp;I always remind clients: Think legacy, not just inheritance. Your wealth transfer should reflect who you are, what you value and what you want people to say about you when you’re gone.



S+:  What makes a succession plan truly meaningful—not just financially, but emotionally or philosophically?



RE: &nbsp;It’s meaningful when it expresses your life’s work, your wisdom and your love. The most successful plans aren’t just about transferring wealth—they’re about empowering the next generation to thrive and carry forward your family’s values.



And here’s something I wish more people knew: Succession planning isn’t just a chore to check off. Yes, it takes time, though, and sometimes tough conversations. But when it’s done right, it brings families closer together. It creates unity and shared understanding around what really matters. That, to me, is the greatest gift you can leave behind.



Photo courtesy of Rob Edwards. This article originally appeared in the July <a href="https://successcom.wpenginepowered.com/subscriptions/">issue of SUCCESS+ digital magazine</a>.

Create a lasting legacy, not just a will. Discover strategies to pass on wealth with purpose and avoid conflict, from expert Rob Edwards.

Create a lasting legacy, not just a will. Discover strategies to pass on wealth with purpose and avoid conflict, from expert Rob Edwards. | SUCCESS

Wealth Succession Planning: Strategies &amp; Insights to Pass on Wealth With Purpose and Avoid Conflict

Wealth Succession Planning: 2025 Strategies & Insights | SUCCESS

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 Natasha Khullar Relph is an award-winning journalist with bylines in The New York Times, Time, CNN, BBC and more. 

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Natasha Khullar Relph

a couple sitting at a table and looking at a laptop to review their finances

Have you ever daydreamed of walking away from that draining job? Wished you could call the shots in your own life? Imagined chasing your dreams without money holding you back? What if we told you that all of this is possible through something called <a href="https://successcom.wpenginepowered.com/16-timeless-truths-of-financial-freedom/">financial freedom</a>? Find inspiration and motivation with this collection of financial freedom quotes that explore all the aspects of this concept.



True financial freedom is having enough savings, assets, investments and passive income coming in that you don’t need to rely on a traditional job. It goes beyond just acquiring wealth. It’s also about gaining security and control. Then, you can spend your time on the things that matter to you most, like your family, creative aspirations or soul-filling adventures.&nbsp;



Of course, this type of invaluable freedom doesn’t come free. It requires financial know-how, discipline and smart budgeting. It often means a willingness to live below your means in the short term so you can do more in the long term. But the good news? You don’t need to become a millionaire to achieve it. You just need a plan, the commitment to stick to it and maybe a few financial freedom quotes to get you started. These words offer motivation and advice as you navigate the tricky yet transformational world of personal finance.&nbsp;



<h2 class="wp-block-heading" id="h-motivational-financial-freedom-quotes-to-fuel-your-success-nbsp-nbsp">Motivational Financial Freedom Quotes to Fuel Your Success&nbsp;&nbsp;</h2>



The journey to financial freedom requires motivation and persistence. Building a comfortable amount of wealth doesn’t typically happen overnight. As you manage your money, it can help to have a vision of what you want your life to look like. Maybe you want to be retired by the age of 40. Perhaps you want the ability to stay home for a couple of years to raise your children. Or, maybe you want to have the means to travel whenever and wherever you want.&nbsp;



Whatever it may be, keep this goal in the back of your mind. Make a step-by-step plan for how you will get there and stick to it. As you navigate, use the following motivational financial quotes to keep you on track. They touch on the true meaning of financial freedom and how to attain it through methods like passive income and investments.&nbsp;







<ul class="wp-block-list">
<li>“Real wealth is not about money. Real wealth is: not having to go to meetings, not having to spend time with jerks, not being locked into status games, not feeling like you have to say yes, not worrying about others claiming your time and energy. Real wealth is about freedom.” —James Clear</li>



<li>“Financial freedom is more of a journey than a destination.” —Rob Berger</li>



<li>“I believe that through knowledge and discipline, financial peace is possible for us—all of us.” —Dave Ramsey, Financial Peace Revisited</li>



<li>“The key to financial freedom and great wealth is a person’s ability to convert earned income into passive and/or portfolio income.” —Robert Kiyosaki, Rich Dad Poor Dad</li>



<li>“Your economic security does not lie in your job; it lies in your own power to produce—to think, to learn, to create, to adapt. That's true financial independence. It's not having wealth; it's having the power to produce wealth. It's intrinsic.” —Stephen Covey, The 7 Habits of Highly Effective People</li>



<li>“To become financially independent, you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment; and turn investment into financial independence.” —Jim Rohn</li>



<li>“Working because you want to, not because you have to, is financial freedom.” —Tony Robbins</li>



<li>“Wealth is what you accumulate, not what you spend.” —Thomas Stanley, The Millionaire Next Door</li>



<li>“You can't live your life waiting to get rich in a job that no longer feeds you artistically.” —Julianna Margulies</li>



<li>“Do what you love, the money will follow.” —Marsha Sinetar</li>
</ul>



Related: <a href="https://successcom.wpenginepowered.com/the-4-core-patterns-that-lead-to-financial-freedom/">4 Core Patterns That Lead to Financial Freedom</a>







<h2 class="wp-block-heading" id="h-inspirational-quotes-on-financial-wellness-amp-stability">Inspirational Quotes on Financial Wellness &amp; Stability</h2>



Financial well-being means dumping the paycheck-to-paycheck grind and getting to a place where <a href="https://successcom.wpenginepowered.com/how-to-make-more-money/">you’re in control of your money</a>, not the other way around. Accordingly, the following tips can help you reach a place of financial stability:&nbsp;



<ul class="wp-block-list">
<li>Set clear short-term and long-term financial goals.</li>



<li>Chip away at your debts.&nbsp;</li>



<li>Build a reasonable budget.&nbsp;</li>



<li>Save more by living below your means.</li>



<li>Invest wisely and set up automatic money transfers to build wealth more consistently.</li>



<li>Develop a habit of constantly learning to increase your financial literacy.</li>
</ul>



Another helpful tidbit is to lean on advice from personal finance experts like <a href="https://www.ramseysolutions.com/" target="_blank" rel="noreferrer noopener">Dave Ramsey</a> and <a href="https://www.suzeorman.com/" target="_blank" rel="noreferrer noopener">Suze Orman</a>. Find a few of their top financial stability quotes below, as well as pointers from other authors, celebrities and more.







<ul class="wp-block-list">
<li>“How you respect your money says a lot about how you respect yourself. When I learned to give myself—and my money—the love and respect we both deserved, I felt as if a huge weight had been lifted.” —Suze Orman</li>



<li>“Money is in some respects like fire; it is a very excellent servant but a terrible master.” —P.T. Barnum, The Art of Money Getting</li>



<li>“Financial well-being isn’t about wealth—it’s about peace of mind and confidence in your financial future.” —Jodie Phelps</li>



<li>“You must gain control over your money, or the lack of it will forever control you.” —Dave Ramsey, Financial Peace Revisited</li>



<li>“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.” —Edmund Burke, Letters on a Regicide Peace</li>



<li>“Whether you want to exercise more often or you're hoping to become debt-free, real change happens in stages. Slow and steady progress is great—as long as you're taking steps in the right direction.” —Amy Morin</li>



<li>“I also learned that I love making money. Anyone who is not afraid of work will be happy with the money they make.” —Gene Simmons</li>



<li>“Money, like emotions, is something you must control to keep your life on the right track.” —Natasha Munson, Life Lessons for My Sisters</li>



<li>“I’m not living large; I just want to live comfortably. I wanna have financial stability that is unshakable.” —Queen Latifah</li>



<li>“Financial well-being is a large component of our health as a whole and should be tended to in the same way as exercise, clean eating and mental health.” —Hulya Gunay</li>
</ul>



Related: <a href="https://successcom.wpenginepowered.com/40-money-quotes-to-help-maximize-your-wealth-2024/">66 Money Quotes to Help Motivate You &amp; Maximize Wealth</a>



<h2 class="wp-block-heading" id="h-wise-quotes-to-help-you-stay-on-budget">Wise Quotes to Help You Stay on Budget</h2>



Financial literacy and budgeting are cornerstones of creating financial freedom. Begin with a basic understanding of financial language, concepts and tools. From there, you can gain more awareness of the current state of your wealth and how to grow it (hint: budgeting will always be a part of this endeavor).&nbsp;



Budgeting is an entirely different animal in and of itself, and there are many ways to approach it. Some people opt for the 50/30/20 rule of allocating 50% of their income for needs (think mortgage, food and utilities), 30% for wants and 20% for savings or debt payments. <a href="https://successcom.wpenginepowered.com/what-is-zero-based-budgeting/">Zero-based budgeting</a>, where every dollar of income is assigned to a specific purpose, is also popular. Or, you can stick to a traditional budgeting technique of relying on the previous year’s earnings and expenses to categorize and plan out money allocation for the upcoming year. The key is to find the method that works best for you and your goals and hold yourself accountable.&nbsp;



Financial planning quotes remind us of the importance of budgeting—with a focus on how it opens us up to new possibilities rather than constraining us. Use them to resist those unnecessary purchases and keep yourself in check—it can be difficult, but well worth it!







<ul class="wp-block-list">
<li>“A good financial plan is a road map that shows us exactly how the choices we make today will affect our future.” —Alexa von Tobel</li>



<li>“A budget is more than just a series of numbers on a page; it is an embodiment of our values.” —Barack Obama</li>



<li>“No matter what you’ve heard or thought about budgeting in the past, hear this: A budget doesn’t limit your freedom—it gives you freedom! It’s you taking control, getting intentional and telling your money what to do.” —Rachel Cruze</li>



<li>“Beware of little expenses; a small leak will sink a great ship.” —Benjamin Franklin</li>



<li>“I remember saying to my mentor, ‘If I had more money, I would have a better plan.’ He quickly responded, ‘I would suggest that if you had a better plan, you would have more money.’ You see, it's not the amount that counts; it's the plan that counts.” —Jim Rohn</li>



<li>“Never spend your money before you have it.” —Thomas Jefferson</li>



<li>“The three legs of the financial planning stool include savings, insurance and investment.” —Brian Tracy</li>



<li>“Being a millionaire and staying a millionaire are two different things.” —T. Harv Eker</li>



<li>“There is no dignity quite so impressive, and no independence quite so important, as living within your means.” —Calvin Coolidge, The Autobiography of Calvin Coolidge</li>



<li>“It’s better to live cheap under budget than luxuriously in debt.” —Joshua Becker</li>
</ul>



Related: <a href="https://successcom.wpenginepowered.com/financial-risk/">The 5 Major Types of Financial Risk You Need to Know About</a>



<h2 class="wp-block-heading" id="h-short-sayings-to-achieve-financial-independence-nbsp">Short Sayings to Achieve Financial Independence&nbsp;</h2>



What is standing between you and financial freedom? It might only be the decisions you make with your money. These financial independence quotes, originally written by the SUCCESS® team, are daily reminders of what’s at stake and what you can accomplish when you lock in. Remember that a few smart money moves and a few sacrifices today can help you live the life of your dreams in the future.&nbsp;







<ul class="wp-block-list">
<li>“You don’t necessarily need more money; you need more clarity and control.”</li>



<li>“No amount of instant gratification could ever live up to the feeling of being financially free.”&nbsp;</li>



<li>“Stick to your plan and remember why you started—the view from the top will be worth it.”&nbsp;</li>



<li>“Consistently investing in your future is like buying a ticket to a lottery that you’re guaranteed to win every time.”&nbsp;</li>



<li>“True wealth is having the ability to say yes to all the things you want to do and no to all the things you don’t.”&nbsp;</li>



<li>“Financial independence is the highest form of peace.”&nbsp;</li>



<li>“Money can’t buy you happiness, but financial freedom can grant you time.”&nbsp;</li>



<li>“You’ll know you’ve reached financial wellness when money isn’t at the forefront of every small decision you make.”&nbsp;</li>



<li>“When your money starts working for you rather than against you, your life changes.”</li>



<li>“Spend your money with purpose so that you can do the same with your time.”&nbsp;</li>
</ul>



<h2 class="wp-block-heading" id="h-what-could-your-financial-freedom-look-like">What Could Your Financial Freedom Look Like?</h2>



Have you ever thought about what you would do if money weren’t an object? Launch your own business? Volunteer your time to help others? Move somewhere new that you’ve always wanted to explore?&nbsp;



Financial freedom allows you to answer this question because it gives you options. Building up a cushion of wealth—through income, investments or whatever it may be—creates space to live on your own terms. And it all starts with the basics: eliminating debt, tactfully budgeting and keeping your eyes on the prize. Financial wellness quotes give you a taste of what financial independence could look like and push you one step closer toward the life you’ve always imagined for yourself.



Photo courtesy of Inside Creative House/Shutterstock

Money management can be tough. Get words of wisdom on budgeting, stability and independence with these financial freedom quotes.

Money management can be tough. Get words of wisdom on how to budget, find stability and gain independence with these financial freedom quotes.

40 Financial Freedom Quotes for Success | SUCCESS

Financial Freedom Quotes to Help You Take Charge of Your Money

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Megan McKinzie is a seasoned writer whose passion for storytelling began early and reignited after earning her marketing degree from The Ohio State University. Since 2019, she has built a diverse portfolio—from profiling Ohio entrepreneurs and covering Santa Barbara weddings to crafting SEO content for established online retailers and brands. Since 2022, her work has focused on the rich intersection of cuisine and culture, with bylines in Eat This, Not That!, Yahoo, and Tasting Table. And in 2024, she joined the editorial team at SUCCESS magazine, where she now contributes insights on career growth and professional development.

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