October has come and flown by. And as those days were filled with fall's delights, October is also commemorated as Financial Planning month. While having a month dedicated to this purpose might seem like overkill, the statistics on the preparation of U.S. families' preparedness for their financial future are staggering and reveal the need for such a focus.
With nearly half of U.S. families having less than $10,000 saved for retirement, 55 million Americans with no emergency fund, and 51% with no long-term financial plan, let's just say that there is a need for people to be thinking more about their financial future rather than just making ends meet each month.
So, grab a cup of coffee or tea, and in celebration of Financial Planning month as well as in the spirit of encouraging long-term financial planning, here are some tips to help spur that endeavor on.
Tip #1: Don't wait.
Seriously, consider future expenses and plan for them. Consumables are consumed and need to be replaced. Homes, automobiles, etc., need constant maintenance. Life events happen even when we don't plan on them. Education, wedding, and health care costs are just a few. Think beyond this week, this month, and this year. A 5-year plan is a start. Here is a Financial Planning Worksheet to help you get started.
Tip #2: Plan for the Unexpected.
In the year of COVID, we have had to learn to adjust to life looking a lot different. The truth is, we don't know what lies beyond the next corner. Best to prepare for the unknown. Obtaining life insurance ensures that loved ones are taken care of. Life is uncertain, but we can still plan on some level. Contact us to set up a free consultation to discuss insurance options.
Tip #3: Don't Go it Alone
Financial planning has a lot of variables to consider. Don't be blindsided by something you miss that could impact your future. An advisor takes the guesswork out of your planning and helps to solidify your plan. Current economic woes – like unprecedented student loan debt and underemployment among millennials – make financial planning more crucial than ever.
Tip #4 Plan All Year Through
While designating a month to bring financial planning to the forefront is a great reminder, financial planning works best when it is consistently done and practiced. Each month holds the opportunity to reexamine our plan and to tweak, if necessary. A plan will not succeed if it is not applied.
So, happy financial planning this fall and all year through! If we can help in any way, please let us know!
Yours For Wise Stewardship,