When it comes to financial planning, it's as much about the direction you're heading as it is the destination.
Author: Adam Beach   -   Date: May 19, 2022

Any goal setting or future planning begins with the questions,

‘Where am I, and where do I want to be?’

Here are some tips to help you begin (or begin again) the planning process.

1- Analyze, understand, and know your financial situation. Sit down and look at your expenses, spending history, assets, and savings. Knowledge of your financial situation will help you understand your overall financial status and if you are on the right path to your goals. Be realistic and honest about your financial history. If you’re married or in a relationship, talk with your partner about what you currently enjoy about your financial picture, and what you’d like to see change.

2- Create a budget – Now that you know your financial history, set a monthly budget. This will help ensure that you are not spending money that you don’t have and will lead to a happy retirement. It will also help you understand what your bad spending habits are while helping you prepare for emergencies. Be sure to include an emergency fund and a retirement savings plan as a part of your budget.

3- Keep track of this budget over time – One of the hardest parts about establishing a budget is that it can change over time. Your responsibility is to keep track of those changes, so you have knowledge of where your money was spent. Have a weekly sit-down meeting and evaluate your income and spending. Are you on track? A good app can help – having an app that syncs with your bank statements brings a lot of clarity to your financial picture.

4- Spend what you have, not what you hope to make. This statement applies mostly to individuals who have a commission component in their salary. These individuals will sometime be able to close a large transaction and feel as if they already got paid on it. This could be very dangerous especially if that large transaction falls through.

5- Ask for help – Financial advisors assist clients with creating a solid financial plan. They incorporate all aspects of your finances including minimizing taxes, offsetting risk, and helping plan for insurance. They also know and understand all the different financial mechanisms available that match your specific case.

Are you spending more than you earn?

Do you have a quality financial plan in place?

Is your financial situation where you want it to be? 

If it’s been a few years since you had a quality financial plan completed, it may be worth investing the time to talk about your wishes and focus them into a written plan.