Five Reasons You Need a Financial Plan

A financial plan focuses you and your dollars on activities that build wealth to support your goals; and that’s why you need one! A financial plan will also help you grow your financial confidence by setting goals, ensuring you understand the effects of your financial decisions, and help you live a lifestyle you can afford.

And, those with a financial plan DO have more money in retirement; up to three times as much!

Here are five other reasons to have a plan.

Improved monthly cash flow

By using an effective budget, you can monitor your spending, prioritize your expenses and keep more of your hard-earned cash.

Stronger income

Cutting back is only one side of the financial equation. Growing your income is the other. A plan to grow your income will ensure you can afford the goals within your plan.

Investments to support retirement

It takes many years to build up a nest egg. Determine what’s required every year to achieve your net worth benchmark with the right assets suited to your risk tolerance like stocks, bonds, ETFs, mutual funds and real estate.

Tax planning

By using the right financial tools at the right time (like your tax advantaged retirement plans, establishing a proper estate and filing medical expenses), you can reduce what you pay in taxes.

Shorter-term savings

Plans aren’t solely for the long-term. They should include a strategy for short-term financial goals like special vacations, upgrades to your vehicle and adding a vacation property.

But, a financial plan is only as good as the PDF you convert it into. To make real progress you’ve got to act, review and amend it every three months, recognize when you are off-track and get help from a Money Coach. A financial plan is an ongoing process and not a one-time event. So, update it annually.

Need a financial plan? Check out our signature program The Secret Art of Building Wealth.