Not Made Of Money

Planning for your financial future is important no matter what stage of life you are in. A plan acts as a guideline as you make decisions, helps you stay motivated as you make sacrifices to meet your goals, and makes it easy to track your financial progress. A financial plan is a must-have for everyone.

Despite the importance of a financial plan, not everyone has to translate that importance into needing to hire a financial advisor to create that plan. Financial consultants’ services can be expensive. If you’re already on a tight budget, you may not have the money to pay their fees. In addition, some financial advisors are really insurance salesmen in financial advisor clothing. You may find yourself feeling pressured toward a specific investment that you’re not sure is the right thing for you and your family. In either of these cases, you’re really better off without a financial advisor.

Fortunately, you can write your own financial plan pretty easily. All you need is a strong understanding of where your finances are now, where you’d like them to be, and the very real desire to achieve your goals. Eke a little time out of your schedule to focus on your finances (if you’re married, make sure your husband schedules the same time) and plan to have a financial consultation with yourself.

Start your meeting by determining what kind of financial shape you’re in. Are you in debt? Write down exactly how much you owe and who you owe it to. Do you have an emergency fund? Make sure you have at least $1,000 socked away for unexpected events. Knowing where you are now will make it easier for you to decide what steps you need to take later.

Next, you’ll need to start dreaming a little. Start slowly. How would you like your finances to look six months from now? What do you imagine your life being like a year from now? Write everything down and then go back evaluate each item. Which goals are more important to you? Prioritize them so that you know which ones should happen first.

Don’t forget while you’re dreaming to throw in a few big dreams. Do you want to retire early and travel? Maybe you’re dreaming about opening your own business someday. Whatever your big dreams are, you’ll want to keep those on the horizon of your financial plans.

Finally, you’ll need to devise a path to get you from your current financial position to the goals you’ve set. If you’re not sure how to get where you want to be, you can always read a few books on personal finance or ask someone you trust for advice. Don’t get lost, though, trying to make your goals happen overnight. Know that this is a life-long process.

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