The first thing you must do in order to reach and maintain any of your goals is to have a plan. Therefore, in honor of it being “National Financial Planning Month”, we will talk about why it is important to have a financial plan and some key components that go into constructing one.
Having a savings account is a good start, but is it enough? It probably isn’t due to the current low interest rates in today’s market place, money in a general savings account simply won’t produce the dividends that are needed for long-term financial success! With that being said, investing your savings is a pretty good idea. In fact, most Americans retire with the money that they earned from investing, not the money they simply set aside in their savings account.
A solid financial plan is critical, or financial success will not be obtained at least not as desired. Allocating your money into different investments without some sort of plan can be extremely risky! A solid financial plan should include solutions ready to mitigate any risks that may come your way. Obtaining assistance from an experienced financial professional in your journey to financial success is definitely a good idea! Remember that a financial plan isn’t set in stone and will evolve over time with the ever-changing market place, and because life, circumstances, and financial statuses change. With that being said, you should set short term and long term goals that you want to achieve. Once you have those goals in place, set benchmarks and times to check the status of your goals, short term and long term, and gage how far on/off track you are to reaching those goals. This will help navigate you to staying on track, and making any necessary adjustments to ensure the success of your financial plan, it is easy to get distracted and to let your main focus get away from you, so stay engaged!
It may seem extremely overwhelming to get your financial plan started and keeping the plan on track, and that’s okay, nothing worth doing ever comes easy! Don’t be afraid to ask for help from someone who is qualified, it is there job and their specialty to know what kind of plan is best suited for you. It is important to start creating your financial plan and your investment plans to help guide you in reaching your goals. Therefore, find a Financial Advisor that you trust and like to help you build your plan today.
This month, October, is National Financial Planning Month, and that means it is the perfect time to start your own financial planning. It is nearing the end of the year, and a good time to reflect on how your finances worked for you this past year and what you want to change for the upcoming year. Just remember, your financial future is in your hands and it is nobody else’s responsibility, take it one step at a time, and make your future the priority!