10 Ways you benefit from a Financial Plan
Winston Churchill once said, "Plans are worthless, but planning is everything". I completely agree! But many people spend more time planning their vacations than they spend planning their financial lives.
I've compiled a list of ten ways you can benefit from a financial plan. And yes, YOUR FUTURE SELF WILL THANK YOU.
Better Clarity
Writing down your life goals will give you more clarity on your timelines and objectives. You'll be able to see, for example, when and where you want to retire, if you want to travel, be philanthropic or do anything else in your life.
2. Less Errors
A financial plan takes out the errors of "mental accounting", where you think of your money in relative rather than absolute terms. It's the act of treating money differently depending on where it's coming from and where it's going. This can often lead to negative results.
3. More Tools
Fill up your toolbelt with smart financial tools. You'll have more ways to leverage different strategies that will help get you to your goals. For example, saving as a young adult will give you the tool of compounding interest. Analyzing your social security can help you decide the best time to begin payments.
4. Save Taxes
It starts with a budget and ends with savings. A good financial planner can walk you through different strategies around budgeting, taxes and savings. Yes, they are all connected, like the circle of life!
5. Crisis Management
What keeps you up at night? Are you the kind of person who runs through millions of "what-if" scenarios in your head? Plan for the 5 D's (Death, Divorce, Disability, Disagreements and Disasters) and finally get some well-earned rest.
6. Cash Flow
Correct Cash Flow, that is. This goes hand in hand with number 4 above. It doesn't matter how great your ideas are. If you don't execute a correct cash flow plan, you could end up stalled or even dead in the water.
7. Increase Fundraising
Capital, credit cards, letters of credit, and more. Whether you are a business owner or not, good cash flow planning leads to better credit history. Better credit history means that you are more attractive to people and institutions that want to invest in you.
8. Smoother Growth
I always tell my clients that investing should not begin until you've gone through the financial planning process. Know why you are investing and then find the appropriate strategies that will help your portfolio grow. Build an Investment Policy Statement for yourself.
9. Next generation
If you are following a good financial plan, that means you are being a good steward of your finances. Other people will notice your relationship with your wealth, especially the next generation. Congratulations, you are a role model that others will want to emulate!
10. Organization & Perspective
A financial plan is a living and breathing organism. It will change as your life progresses. Building a financial plan will organize your life and give you great perspective on what happens with your finances.
Contact me for a no-obligation call. We can talk about the aspects of a financial plan that are most important to you. cgamache@audaxwealth.com
