Do you have a comprehensive financial plan? Building a financial roadmap can help relieve stress and equip you to meet your financial goals and be prepared for the future - no matter what it looks like. Whether you’re just starting to create a financial plan or you’re ready to take your financial plan to the next level, here are five important questions you should consider.
#1: What Goal Is Most Important To You?
Every financial plan is different because every person is different and has different priorities. To develop an effective financial strategy, you first need to determine what is most important. Is it putting your kids through college? Buying a vacation home? Saving for retirement? All of those things are worthy goals, but a good financial plan will set clear priorities and keep you on track to meet your goals on time and help you achieve your dreams.
#2. What Is Your Biggest Financial Fear?
Just like we discussed earlier, every financial plan is different since every individual has different goals. The same thing is true of financial fears. Everyone has different things they want or need to prepare for financially. For those who live in areas prone to natural disasters, that might mean putting away money for disaster recovery or insurance deductibles so that a hurricane or tornado doesn’t leave you stranded. Others may want to save money for medical emergencies or unexpected bills. Regardless of the plan for your “rainy day fund,” it’s important to have one and to know how much you’re saving towards it.
#3. What Is Your Investment Philosophy?
Are you the kind of person who enjoys taking risks with the potential of great rewards? Do you prefer to stay on the safe path even if it means smaller returns? It’s important to determine what risks you’re willing to take and how aggressive you want to be with your investments. Beyond risk, you should also determine whether you plan to actively manage your assets or take a more “hands-off” approach. There are benefits to all of these strategies, but you have to find the one that works for you. Knowing your investment philosophy and how you are comfortable investing is one of the most important things for you to consider as you think through your financial plan.
#4. Do You Need to Hire A Financial Planner?
It may be easy to brush this question aside and think, “No, I got this.” You probably have a list of reasons in your mind as to why you don’t need help with your financial planning. But it’s worth considering hiring a financial advisor or planner even if you’ve written off the idea before. The internet is a great resource for general financial advice or information, but when it comes to personalized, clear advice that applies to your specific situation, the wisdom and experience of a financial advisor is invaluable. Consider meeting with an advisor for an introductory consultation to see if professional advice might be useful for you as you plan and manage your finances.
#5. How Well Do You Stick to Budgets?
This is the question no one wants to talk about. If you find yourself having trouble staying on track with your monthly budget or savings plans, you’re not alone. In fact, the vast majority of people have struggled with this at one point or another. No matter where you are in your financial journey, it’s important to set realistic goals for both spending and saving. Setting realistic and attainable goals will make it easier for you to stay on track. Another way you can guard against getting off track is setting up automatic transfers for savings goals. If your money is moved automatically, it won’t be there to spend over your planned budget.
Financial planning can be overwhelming and stressful. If you have questions about your financial plan or just want to talk to someone about the future, call Wealthbridge Financial Advisors at 256-655-8628. We use a full-scope client financial picture to develop recommendations and a comprehensive financial plan for you that meets your needs and is centered around your priorities. Wealthbridge Financial Advisors is one of those rare hybrids: a company with exceptionally skilled financial industry professionals providing family office-level services without the arduous qualification process and seven-figure annual costs. Financial planning isn’t easy, but you don’t have to do it alone. Call us at 256-655-8628 to set up a free initial consultation. We look forward to connecting with you soon!