Financial Planning: Do’s & Don’ts
Wants, needs and how we spend our money have all changed, the shift in financial planning to achieve this has been slower to evolve, and we have unfortunately found ourselves in a situation where credit has become more dangerous than ever before and the cause of many economic problems in the US (as we are all well aware!). With this in mind, we at Shore Financial Planning have come up with a list of dos and don’ts that will help you to achieve both your goals – to enjoy your money now and to be financially secure when you too decide to kick up your feet and hang up your suits.
- DO decide what you want and set money goals
Before you go about designing a financial plan, you need to be clear on what you are planning for. Make a list of all the things that you currently spend your money on and all of those that you would like to spend your money on. Once you have a clear objective it will be much easier to outline the steps to get you there.
- DON’T put (all) your wants ahead of (all) your needs
As much as you are entitled to enjoy your hard earned cash on holidays and designer threads, you need to be realistic about what you want versus what you need. Make sure that your financial plan is balanced in this regard. Prioritize your wants and needs according to the order in which you value them, this will help you to adequately allocate resources to each.
- DO think wisely about credit
Credit can be both a blessing and a curse. Make sure you make conscious credit decisions that can give you the hand you need without taking the whole arm as well.
- DO set up a rainy day fund
As sure as the sun will rise in the east and set in the west, life will throw you a few curve balls. Be financially ready for them! Make sure you have an emergency fund for life’s unexpected expenses.
- DON’T forget about the now but DO plan for the end
As mentioned before, the way our parents and grandparents lived and saved is no longer our only option. Make sure you plan to have money to spend now, on the things you enjoy or need, but don’t totally ignore the end. When a monthly salary suddenly stops it can really affect the way you have to live. You don’t want this! Make sure you have enough of a nest egg to continue living the way you want to, long after you leave the boardroom.
- DO monitor your plan: DON’T invest and forget
Once you have decided on a plan, don’t forget about it until you are 6 months from retirement. This may sound ridiculous but time flies and lots of people spend their last year of employment worrying about how their “perfect plan” has failed them. Revisit your plan annually. Consider both changes to the world economy as well as changes to your personal goals and objectives. Do your best to make sure that your plan is always aligned with YOUR money goals, which will change as much as you will throughout your life.
- DON’T forget to ask for help
As a successful professional, one can fall into the trap of attempting to do it all yourself. Just as you wouldn’t diagnose your dog’s medical condition without consulting a vet, you shouldn’t plan your finances without professional advice. And even if you are a financial professional, it is impossible to be objective when it comes to your own life and your own financial plan. Hire someone that can guide you and advise you without letting emotion or ambition get in the way.
Financial planning is not an easy task but knowing what your current situation is, is the first step to being in total control of your financial life going forward. And that is what Shore Financial Planning is all about: making sure that our clients have the ability to see their financial big picture, all of the time. And that can ultimately ensure that you make your working years count and live the life that you desire! Because financial planning should pay off now, not only in ten years time.
Shore Financial is a fee-only, tax-focused financial planning firm located in Monmouth Beach, NJ.
Joseph Vecchio CPA, CFP®, MBA is the firm’s President and has dedicated his professional life to the finance and accounting professions.
Joe believes that people are being exploited by financial salespeople who are merely motivated by quotas, product sales and commission-based income! Shore Financial Planning was founded to provide peace of mind through conflict-free, value-added advice.
When you work with Shore Financial Planning, the financial advice we provide is ALWAYS in your best interest.
As a Certified Financial Advisor, NAPFA Professional, and Fiduciary Advisor, Joseph Vecchio offers unbiased and conflict-free financial advice & retirement planning services.
I want to make sure that I get my finances put together properly. It makes sense that I would want to get a financial planner to help me out with this. That seems like a good way to ensure that I handle things correctly.
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Thank you Joshep for this beautiful article. I enjoy reading it. I appreciate your thoughts & ideas. This type of article always inspires me.
I appreciate your suggestion to hire someone to help you plan financially. My brother wants to start a financial plan. I’ll suggest that he hire a professional financial planner to help.
Thanks for providing this blog. I love it.
I never knew that you need to be clear on what you are planning for. I never thought that it would be like this, it is an intriguing article to read and I will also share this with my aunt. Thank you for the information about retirement planning.
You made a good point about mentioning that being realistic can help you avoid having expenses that is not important. My cousin mentioned to me last he is planning to start fixing his retirement plan for comfortable and secure retirement and asked if I have any idea what is the best option to do. Thanks to this informative article and I’ll be sure to tell him that it will be much better if he consults a trusted personal client service as they can answer all his inquiries.