When to Begin Financial Planning? A 2020 Guide

Woman reviewing her financial planning report

It’s never too early—or too late—to begin financial planning for the future. 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.

According to a 2019 survey released by the National Association of Personal Financial Advisors, 45% of Americans described their relationship with money as stressful. Moreover, a whopping 74% of those surveyed wished they could receive a “do-over” on their financial planning. Another telling statistic: 1 in 3 people indicated they didn’t believe they’d ever be able to retire—and this was before the COVID-19 pandemic threw a wrench in the works.

The Perks of Planning Now

The sad truth is that many people delay financial planning. If you’re one of them, you’re certainly not alone. With so many Americans living paycheck to paycheck, putting money away for the financial future sounds overwhelming and sometimes impossible.

You’re probably wondering when to start planning for future expenses. And here’s a quick overview on why you should do it now:

  • 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.

Should I Work With A Financial Advisor?

One solid option to tackling your financial future is working with a financial advisor who can help you with:

  • 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

Start Planning Your Future with Focus Financial

If you’re under the age of 30, planning now can give you a head start on the path to financial freedom. If you’re middle aged and increasingly approaching retirement, it’s still not too late to get started—as you’ll be able to structure your current finances in the most advantageous way possible. Utilizing financial planning services from Focus Financial can help you take on your finances with confidence and give you peace of mind while prioritizing your goals and dreams.

Contact us today to learn how we can help or to find an advisor near you, simply search our online database!