Financial uncertainty has increased in 2023. The question for many is how to face this uncertainty. Although two-thirds of Americans agree that their financial planning could improve, only 37% currently work with a financial advisor. An ongoing financial planning relationship with a trusted financial professional can ensure that needed conversations occur to create a financial plan. We examine why financial planning is a “must-have” and how it can help you establish and accomplish your financial goals.
Developing and prioritizing goals
Many people today have important competing goals (i.e., a child’s education, retirement, the following summer vacation). Setting goals is a pivotal phase in financial planning; it is the compass that steers your financial journey. This should be a dynamic and ongoing process as you navigate through your life’s ambitions and envision the future you aspire to create. By defining clear and achievable financial objectives, you craft a roadmap to guide your decisions and actions.
Goals can range from short-term pursuits, like building an emergency fund, to long-term visions, such as funding education or securing a comfortable retirement. By setting goals, you develop a picture of success and establish measurable milestones to track progress. This process is the cornerstone of rationalizing budgeting, investing, and expenditure choices. It’s essential to understand how each piece of your finances works together, and this process allows you to allocate your resources wisely, ensuring that your most important objectives take center stage. A well-prioritized plan considers urgency, impact, and alignment with your values. Holding yourself accountable to priorities and goals over time is the essence of financial planning.
Intertwining values with financial planning
Many people judge successful financial planning by a portfolio’s rate of return or increasing account values. However, one of the most critical questions that can be asked in financial planning isn’t “how”; it’s “why.” Intertwining your values into your financial planning can add depth and purpose to the process. It can result in a financial plan that resonates with your beliefs and aspirations. Whether it’s supporting causes you’re passionate about, ensuring your family’s well-being, or fostering a sustainable lifestyle, your values serve as the compass directing your choices. Financial planning can help you align your goals with what truly matters to you. This approach enriches your decision-making process and fosters a sense of fulfillment as you witness your resources impacting your principles.
Implementing personalized financial strategies
While you should expect to be in charge of your financial planning relationship, enlisting a financial planner’s expertise can help guide the journey toward your financial goals. A financial planner shouldn’t just crunch numbers; they should help you understand the intricacies of finance and help you navigate investments, budgeting, and wealth management. A financial planner can empower you to make informed decisions that align with your aspirations by presenting possible strategies to reach each financial goal and help you choose and implement the solution.
Receiving timely advice that is personalized and disciplined
Financial planning is not a one-time event or a report of recommendations. It should be a disciplined approach to help you navigate life changes and unexpected circumstances. Collaborating with a financial planner can be the cornerstone of cultivating accountability and instilling a systematic approach to your financial journey. They can help keep you focused on your objectives and adjust strategies when twists and turns arise. A financial planner can help you progress steadily toward reaching your financial goals through regular check-ins, progress assessments, and adaptive systems. Their expertise should extend beyond just managing money; they should help manage your financial progress.
Goal setting forms the foundation of effective financial planning, transforming your dreams into reality through deliberate steps and well-informed strategies. Financial planning can structure your aspirations, helping you define clear goals, chart a roadmap, and execute a step-by-step plan. If you want to instill your financial journey with discipline, consistency, and expertise, a financial planner can be your compass and co-pilot.
In our work with clients, we first establish the “why”: your most cherished financial goals and dreams. Once we know that, we can help them figure out the “how.” Read our blog “Listening to Mom: A Financial Primer” to find out more about our approach to these basic principles. Our goal at Mathis Wealth Management is to help clients discover and apply these foundational principles to their financial planning. If you’d like to learn more, get in touch.