We all have goals in life – things like buying a home, starting a business, retiring early – but sometimes it can feel like money problems are getting in the way. Maybe you aren’t saving as much as you thought. Maybe you’re spending too much in the wrong areas. Creating a financial plan can give you clarity.   

A financial plan is essentially a way to take the money you’ve worked for and make it work for you. How do you get started? What do you need?   

Here are a few things we recommend for clients who are starting their financial planning journey!

Do you need guidance in your financial strategy? Schedule a consultation today!

Your financial goals should be centered around who you are as a person. What are your values? What do you feel like you are called to do in life?  

Because everyone has different callings and passions, what you hope to gain out of your financial plan will reflect what matters most to you. Some of our clients want to send each of their kids to college without the worry of student loans. For others, their primary focus is freedom for purchasing “wants,” not just needs.   

Saving money can be difficult, but it’s easier if you know why you are saving. Setting goals gives you an extra sense of motivation that makes reaching them more manageable, and more rewarding.    

When you meet with one of our financial advisors for a goals conversation, we ask questions like, “What is keeping you from getting where you want? How much are you willing to sacrifice? What are you willing to change?” These can seem like intimidating questions, but it helps bring your ideas and desires into tangible actions. 

After identifying your financial goals, the next important step is evaluating your current financial situation and strategies. Your existing resources will play a critical role in reaching these goals.   

Take your career, for example. Does your salary and work-life balance support your goals or hinder them? While finding a new job might not be the right solution, we want to help you identify what areas of your life are already setting you up for success.   

One of the most essential financial strategies is creating and sticking to a budget. When you understand how much you are spending, you have better insight into how much you can save and invest.  

For many people, they may be budgeting well, have some money set aside, and overall have a general idea about their financial plan but haven’t figured out how to put it all together. That’s where our financial advisors come in. Throughout our process, we talk about how you view money, what issues you have, what goals you want to reach.   

It’s about where you are, but also where you are going. What is your end goal? What do you want it to look like in five, ten, fifteen years when your kids go off to college or you stop working? From there, we can answer the most important question, “How do we get there?”

If you don’t have an emergency fund, you need one. Less than half of our first-time clients have an emergency fund and a good budget. Our concern is that when you don’t have an emergency fund set aside, you are always spending any additional income. It digs a deeper hole for when these unexpected situations do arise. When you build up a reserve, you have more freedom to work towards your other goals.   

You may have heard the “rule” about always having six months of income in your emergency fund. Most financial advisors would agree that you should have three to six months of income set aside. But that’s a range. How much should you really have?  

We advise the amount based on several factors. Do both partners work? If you have two streams of income, you are better protected in case of an emergency. It also depends on the type of job you have and the industry you work in. If something happens, how easy will it be for you to find another job? Just like when evaluating your current financial strategies, it is good to know your risk level and opportunities in different situations.   

When we talk with clients about an emergency fund, it’s not about fear. We believe there is wisdom in being prudent. Having this resource is powerful because it gives you a sense of peace and relief. People tend to make better decisions when not under stress. 

Investing is really the only way to grow your personal wealth and capital. When you own marketable securities, or invest in your business, it’s putting capital to work and hoping for a positive return. With a small amount of money, you can invest in major organizations through the stock market. For $100 you can buy a share of a company worth billions, and you can leverage each dollar into all of the research, expertise, resources these companies have.   

It’s the same when you use a financial advising firm for your investment strategy. Our team has the knowledge, tools, and expertise to evaluate thousands of companies to find the strategy that works best for each of our clients.   

We also believe that when you invest, you are participating in the advancement of society. For years, people around the world have been able to leverage investments to create and innovate, develop civilized societies, provide better access to resources, and more. By investing, you are growing your wealth in a way that supports the growth of the world around you.   

We know it can be hard to start. But investing is a discipline, just like saving. By starting now, you’ll be much farther ahead than if you were to wait until five years from now. Not sure how to start? Schedule a consultation with one of our advisors today!  

When we talk to clients about starting their financial journey, we often say this: When people set a goal to climb Mount Everest, they hire a local guide, called a Sherpa. Now, the Sherpa doesn’t carry them up the mountain, pack their bags, or clear the way for them, but he or she does know the steps to take to get them up and down the mountain safely. If they listen to their guide, they will make it to the mountain peak, see some incredible views, and return home with an incredible story. All because they had a guide that had been there before.   

That’s what we want to do for our clients, be a guide throughout the financial planning process. We want to help you meet your goals, live aligned with your values, and foster confidence that you are living well and finishing well. Contact us today to learn more!  

Past performance may not be representative of future results.  All investments are subject to loss.  Forecasts regarding the market or economy are subject to a wide range of possible outcomes.  The views presented in this market update may prove to be inaccurate for a variety of factors.  These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data.  Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.