Financial Planning Month: Tips for Financial Planning

National Financial Planning Month—Tips for Planning

October is National Financial Planning Month and Growth wants to help you navigate ways to reach your financial goals by learning how to plan properly. When planning, it’s important to think about your future and where you see yourself financially in the coming years. Thinking about retirement? Buying a house or a car? Trying to send your children to college? All these questions are reasons why planning ahead is always a good idea for whatever comes your way in life.

In order to develop a solid plan, it’s important to take into consideration what your financial needs, wants, and goals are to figure out how to prioritize them. It’s also important to figure out your personal and business circumstances, investment and/or tax constraints, and your viewpoint on risk. Short-term needs like maintaining your day-to-day spending level, funding a large purchase, or even setting funds aside for unexpected events are important to consider.

Important components of financial planning:

• Cash flow
• Saving and investing
• Retirement planning
• Taxes and Insurance
• Estate planning
• Employee benefits like Healthcare, 401k, and spending accounts

Some quick tips to start planning include:

Having a written plan– Write down your goals because it increases your likelihood for success. It also helps to provide a basis for accountability, milestones to celebrate, and keeps you on track of your financial journey.  Remember to use the SMART method for goal setting—specific, measureable, actionable, realistic, time-bound.

Develop great habits– Being disciplined, committed and consistent will go a long way in your work and personal finance. In order to successfully manage your money, you must manage cash flow and save.  Determine a set amount to save and create a saving schedule.  Direct deposit is a lifesaver here.   Simply set a predetermined amount to be deposited into a separate savings account each paycheck.  Keep the balance in your everyday checking or savings account for day-to-day expenses.

Believe in your future– Be confident in your decision making and planning. Life can throw us a curveball or two whether we are ready for them or not. To be financially prepared, stick to your budgets and goals in case a surprise event does happen.  A great tip is to have a rainy day savings account for those unlucky moments.

This month, we encourage you take the time to plan for not only yourself, but your loved ones.  Making good financial goals will set you up for success now and in the future. Need help with planning? Interested in learning more about financial capability and credit?  Saving for a home purchase?  Check out our page on housing counseling for more information.  There’s something for everyone!