They say it’s never too late to begin financial planning for your future. But if 2020 taught us anything, it’s the importance of having money set aside to support your business or family and protect you from the unexpected.
Therefore, it may be a better option to start financial planning now vs. later. According to a recent survey, as little as 39% of Americans reported that they could “comfortably” cover an unexpected cost equal to $1,000. Eighteen percent further stated that they could handle the expense but only at the cost of skimping on other items in their budget (Bankrate).
But hope is not lost.
In fact, it appears that more people are aware that financial planning is now a necessity, and they’re working diligently to improve their financial status by getting out of personal debt. Since the beginning of the pandemic, it was reported that Americans have paid off a record $83 billion in credit card debt (CNBC). Experts now believe that although COVID presented many challenges, it has slowly changed the mindset of Americans to spend less and save more (Forbes).
Planning Your Financial Future – 2021 & Beyond
Though this is a promising start, the sad truth is many Americans are still living paycheck to paycheck. If this sounds like you then the idea of putting money away for the financial future may sound overwhelming and impossible.
We are here to assure you that it’s not.
Once you’re ready to get started, here’s just a few benefits you can expect:
- You’ll be ready in case of emergency: In a 2020 survey from First National Bank of Omaha, 53% of Americans surveyed reported having no emergency fund whatsoever.
- You’ll be able to structure a goal-oriented life: Financial planning can help you with buying a home, covering college tuition of kids, affording travel, paying off debts, saving for long-term care coverage, and of course, enjoying a well-deserved retirement.
- You’ll give yourself increased confidence: Planning now provides a true sense of financial security for the future.
Where Do I Even Start?
So, how do you get organized for financial planning management? Ask yourself the following basic questions as part of formulating an overall strategy:
- Should I consider investing as part of my overall financial strategy?
- How much from each paycheck can I afford to put away?
- What do my estimated future costs look like ( i.e. paying off debts and loans, paying a mortgage down on a house, etc etc)? From there, you can base your savings on estimated costs.
Do I Need an Advisor?
- Finding the right strategies to financial issues, whether it’s an investment strategy, mortgage, or insurance plan
- Making strategic, market-driven decisions about your 401K
- Figuring out how to pay of debt and/or loans
- Tackling unexpected costs
- How to organize and save for future financial priorities
- Tax strategies
- Saving time on financial planning—and money in the long-term
Ready for a Brighter Financial Future?
When is the best time to start financial planning? The answer is right now! Whether you’re a young professional, approaching the age of retirement, or somewhere in between, the sooner you begin the process, the higher the potential return on your investment.
Utilizing financial planning services from Focus Financial can help you take on your finances with confidence while prioritizing your goals and dreams.