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Financial Planning 101: What it is and 10 ways it will change your life

Financial planning is the process of setting, working toward, and achieving your wealth goals. Whether you have already established a robust nest egg, or are just starting out - here are ten ways a professional financial plan will benefit you, your family, and your future.

Your customized wealth strategy will:

Did you know that the difference between a wish and a goal is a plan? A financial planner can help you shape your dreams into attainable objectives, by placing them at the heart of your wealth strategy. If you find yourself spending more time planning your next vacation than your retirement, it’s time to outline a clear and direct path toward your future.

The act of identifying your short- and long-term goals is only one half of the equation. The second is enacting a plan that analyzes whether each objective is realistic given your time-horizon and tolerance for risk.

We all know how easy it is to swipe that plastic card with little or no regard to what we are actually doing. A professional wealth strategy will challenge you to look at your cash flow and expenses, and ultimately identify where costs can be cut. Setting and following a defined financial plan will help curb impulse spending and encourage solid saving habits.

A personalized financial plan will help identify blunders in your financial life now, so that easy fixes can be employed sooner than later. The result? Catching and correcting oversights that have the potential to cause long-term harm - like paying 18-percent interest on your credit card balance, but not making at least 18-percent on your investments.

Whether losing weight, perfecting your skills as an at-home chef, or saving your hard-earned money, the top goal-reaching deterrent is a lack of measurable results. Working toward your stated objectives with a financial planner and a clear plan, is the key to your continued long-term success.*

In consideration of your personal circumstances, objectives, and risk tolerance levels, a proper financial plan will serve as a guide in choosing the right investments to maximize your hard-earned cash, and identify potential missed-opportunities along the way.

As the head of your household, your family is counting on you to guide them safely into the future. Short- and long-term wealth security plays a critical role in the financial planning process for families. A holistic and well-executed plan will isolate and incorporate proper insurance coverages to instill the peace of mind your family deserves.

When was the last time you felt financially confident? Whether your answer is last week, last year, or never - a financial plan will guide you toward the wealth assurance you deserve. According to a recent CERTIFIED FINANCIAL PLANNER Board survey, 52% of respondents felt “very confident” about managing their money, savings, and investments thanks to having enacted a financial plan. Only 30% of those surveyed who are currently without a plan in place, reported the same level of financial confidence. **

Planning for the unexpected is the key to overcoming it. A comprehensive financial strategy will not only account for these unknowns, it will clearly outline actionable measures you can take when the inevitability of life does occur. You can’t avoid every pothole along the way, but you can lessen negative implications with thoughtful decision making that best serves your current and future situation.

Following your plan will provide you with mental, emotional and financial peace of mind. Ultimately, your wealth strategy should serve your best interest at all times, enhance your standard of living, and improve your overall financial well-being.

Your financial plan is a living document that is as dynamic as you are. Able to adapt to changing markets and personal situations, your Life Plan Investments strategy will be tailored to you and your goals.

It’s never too early - or late - to develop a plan and get financially ahead. Give us a call today to start building your personalized Life Plan.

** CFP Survey