Key Steps in Developing a Financial Plan 

Making a financial plan may seem daunting and is often one of those tasks that can easily be pushed aside. With the development of so many financial apps, budget programs, and online advice, financial planning could become paralyzing. Although, saving and planning for a lifetime of financial success does not have to be overwhelming. When beginning the journey on how to save for retirement there arethree major steps to laying its foundation. 

  1. Determine the goals! It is hard to hit a bullseye if you do not know where the target is. Developing realistic goals will offer insight on the steps necessary to accomplish your financial success. Certain examples of different goals could be an early retirement, career development, college savings and inheritances for children, charitable giving, and other rewarding financial goals. These goals can affect timing and priority. Once there is a realistic framework, suitable recommendations can be made!
  1. Develop steps to hit those goals! Taking certain goals into account, what financial actions need to be taken? Such steps include:
  1. Understanding investments, how much to invest, and at what risk tolerance. 
  2. Getting the right protection in place like life insurance and maximizing company benefits.
  3. Create an estate plan to ensure your plan is continued after your passing. 

Outlining these actions can help you create a realistic budget and will prioritize where money should go – reducing stress, and financial uncertainty. If these steps still seem too complex, and uncertain, you may want to speak with a local wealth manager or financial planner for professional recommendations and assurance!

  1. Maintain the Plan! Once the goals, and steps have been outlined, the plan is not finished. A continual monitoring of budgets, and investments will help to see if you are still on the right path. Do any adjustments need to be made? Have certain assumptions been changed? Sometimes, even the financial goals can change and monitoring the plan will help you adjust to stay on track to reach the desired life goals. Employ discipline! Stock market fluctuations, and volatility are to be expected, and are not a cause to change a strong financial plan. Maintaining discipline and reviewing the plan is the best way to ensure a future of financial success.

These three tasks are the foundation for all personal finance. It is imperative to determine the goals that are to be achieved, outline the actions steps needed, and consistently review the plan to ensure its success. Hopefully, taking these key steps will reduce the dread that can hinder financial planning. By digging into each step realistically, and mindfully, you will be on your way to financial prosperity and peace. 

If you are looking for a current wealth management advisor, then we would advise you to contact us at 918-727-7100

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