What’s Your Financial Plan?
How do you plan your future?
Where does money influence your decisions?
Do you feel burdened by financial uncertainty?
In terms of managing your money, it often feels easier to ignore fiscal matters then approach them straight in the face. Maybe you’ve been unlucky recently and are unprepared for the reality of your financial situation. Maybe you’re just too busy working to look at the numbers and sort them out for your future.
Lauren Shin writes a great article in Forbes suggesting one simple strategy to get you thinking about your finances, even if it’s something you have managed to avoid for quite some time.
Shin refers toThe One-Page Financial Plan, a book published by financial planner Carl Richards addressing the faulty assumption that these plans are exclusively for the 1% and ensuing conversations with friends and family.
So, how does Richards think you can get the most out of your money?
Here are some of his tips:
- Ask yourself why your money matters
Being able to define why you need your money and where you want to see it in the future will guide you through the process of finalizing big financial decisions, such as funding retirement and education for your children.
- Save as much as you can
Many of us have a shopping problem. Next time you’re browsing Amazon.com or out at the mall, take ten minutes to look at what you have in your shopping cart. Think to yourself, do you really need this product? Can you use something you already have at home? Resisting impulse buys and saving income that can otherwise be “disposed” is a great place to start.
- Don’t hesitate to hire someone
It’s a fair assumption that you won’t be able to compute all of your finances alone. The real purpose of a financial advisor is to provide a second opinion from someone who is emotionally unattached to the money. They did not earn the money and it’s not their future, but it’s their profession; financial advisors are very helpful in in this instance.
From just these three tips, you can get started on your financial plan. The point it to be able to write everything down on one simple sheet of paper. Your money and why it matters has a complicated history, but it can look simple as a plan; fund retirement, fund the children’s education, pay off the mortgage. This is where your financial plan begins.