A good plan helps steer behavior toward more positive outcomes. It helps prepare you mentally for the challenges ahead, with a predetermined plan of how to respond to them. Here are three reasons why I think everyone needs a financial plan.
Where Do Your Kids Fit In Your Financial Plans?
When Eleanor joined our family, we had a lot of financial things to consider. How will having a child impact our budget? Which expenses would increase or be new? (Some answers: food, health insurance, and diapers, diapers, diapers).
In my planning mind the bigger question was how were our financial priorities changing? Kellie and I started thinking about saving for Eleanor’s schooling through a college savings plan. But did saving for Eleanor’s college trump or impede our other financial priorities?
Regardless of what stage your family is in (growing, maturing, or empty-nesting) it’s important to think about the financial implications of these different stages even if they feel far down life’s road.
Doing so can help you anticipate the changes that will inevitably come and make better financial preparations for the future.
No One Can Read Your Financial Future
I can’t see into your financial future. No financial advisor can, and you should run far away (far, FAR away) from any who believe they can. All I can say is I believe individuals, families, and communities have an inherent desire to grow and prosper. And most leaders of nations (including our own) want the same for their citizens.
Thanks, La La Land, for Showing Us a Bit of Reality
Kellie and I went to see La La Land a couple of weeks ago. We both loved the film for it’s wonderful music, captivating story and creativity, but it’s the ending that really hooked us. The final scenes helped me understand a bit better the value of making plans (financially or otherwise) even if they don’t work out.
How to Live Below (Not Just Within) Your Income.
Last week I touched on how Kellie and I were able to realize our dream to move to Star Valley, Wyoming and start Hale Financial Solutions. We did this through “an established habit of living beneath our income.” So why “beneath” our income and not “within” it?