In this financial planning article, I’m going to show you everything you need to know to get started with a financial plan. Here is what we’ll cover:
• What is financial planning
• Why it’s important to plan your finances
• The best resources (apps) to plan better for free
Whether you’re trying to save for your children’s college tuition fund, getting ready for your wedding expenses, planning for retirement, or any other financial goal, this guide can change your life. You’ll learn the basics of planning intelligently and setting yourself up for massive success.
A financial plan is a comprehensive statement of an individual’s long-term objectives for surviving and thriving financially. It’s a detailed budgeting and investing strategy.
A financial plan may be created independently or with the help of a certified financial planner.
According to The Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans would find it difficult to get $1,000 in an emergency.
Before you go ahead and start downloading the latest mobile and web app (which we will get into later in this article), let’s go through our time-tested methods. Afterwards, and we’ll get into the ins and outs of how to move forward with creating plans for your financial future.
And the best thing about all of this (in addition to reaching financial freedom and having peace of mind):
A financial plan is a comprehensive statement of an individual’s long-term objectives for surviving and thriving financially. It’s a detailed budgeting and investing strategy.
A financial plan may be created independently or with the help of a certified financial planner.
According to The Associated Press-NORC Center for Public Affairs Research, two-thirds of Americans would find it difficult to get $1,000 in an emergency.
Before you go ahead and start downloading the latest mobile and web app (which we will get into later in this article), let’s go through our time-tested methods. Afterwards, and we’ll get into the ins and outs of how to move forward with creating plans for your financial future.
And the best thing about all of this (in addition to reaching financial freedom and having peace of mind):
You can apply the principles in this guide to planning for any type of goal (not just financial): personal or professional.
While most people know they need a financial plan, many most do not have a plan. And even fewer have a great plan that works. According to research by Charles Schwab in the Modern Wealth Index, Americans give the following reasons for not having a better financial plan:
The most talented athletes in the world, including Olympic athletes, prioritizes plans. If you rely on your plan, as an Olympian relies on his/her training plan, your finances will perform better. So get ready for your journey to your financial Olympics: the best performance you’re capable of achieving.
Here are some other interesting statistics:
So hats off to you for reading this article and trying to improve your financial future.
Let’s keep going.
Mastering the fundamentals of financial planning might be the #1 key to maximizing your fiscal fitness in the game of life.
It’s important to remember these core principles:
Nearly every one of the wealthiest people we’ve ever worked with believes in a custom plan. Most super-wealthy people do not rely on generic strategies. So… this guide should serve as a resource to begin to improve your custom plan. It’s not plug-and-play. That rarely works. We’re just giving you a framework to build on. If you need help actually creating plan, we’re glad to help you with that too.
So you may be thinking: are you saying that a great plan is all I need to become wealthy? No. Of course not. I am saying that without a great financial plan, you’ve got no shot of maximizing your wealth.
Sacrificing the quality of your planning process is a matter of life and death. Life or death? Yes, that’s right. Sounds extreme and dark right? Yes, it is. But it’ll be worse for you and your loved ones if you don’t plan well.
A great financial plan can also be the master key that opens the kingdom of your wildest dreams. And this is not about the materialistic stuff. This is about real life. Financial health and wellness are non-negotiable.
It’s not as simple as just printing out your bank’s automated financial plan. If it was, you probably wouldn’t be reading this right now. You’d be on your yacht in San Tropez. Also, the statistics above would probably not exist if it were easy. If simply downloading a financial software was all you needed to do, you would be earning dividends like Warren Buffet.
Creating a custom financial plan helps you see the big picture. With a clear vision for your financial health, you can set long and short-term life goals. This is a crucial step in mapping out your financial future. Vision and then goals. Not the other way around. You can’t create a roadmap if you don’t know where you want to end.
When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals too. Action improves motivation so take massive action. Get serious about your financial planning.
Here are some common excuses you should avoid at all costs:
Most people in America are not financially healthy. Don’t be like most people.
To that point, 75 percent of Americans plan their finances, with no help from a professional or online service. According to a CNBC and Acorns Invest In You Savings Survey: Only 17 percent said they use a financial advisor.
Simply, a financial plan gives you direction for your investments. Financial planners give you accountability. And if you’re not doing enough financial planning, you’re not the only one. Sometimes you simply need someone to do it for you.
So don’t beat yourself up about it. Rather, get honest and fight through the fear of denial and procrastination. Show yourself the self-love you deserve because you are worthy of unlimited success. Ask for help if you need it.
According to a recent Nerdwallet survey, here are some interest findings from 2019:
Are you an entrepreneur? Do you manage a business? Is managing a company your full-time job? Regardless of your job title at work, financial planning is also crucial in the business plans that build businesses.
There are a lot of similarities between professional and personal financial plans:
Are you an entrepreneur? Do you manage a business? Is managing a company your full-time job? Regardless of your job title at work, financial planning is also crucial in the business plans that build businesses.
There are a lot of similarities between professional and personal financial plans:
Here are more numbers that make things, even more, crystal clear:
Want more eye-opening statistics about financial plans? There’s more:
In today’s abundance of options for banking and investing, it can be overwhelming.
According to the Bankscope Global Banking Database, there are over 30,000 banking establishments with licenses worldwide.
Don’t overcomplicate the process for you, your wedding, your children’s tuition, your business, or anything else that needs money to survive and thrive. Remember, that’s something we went over at the beginning of this guide.
Financial planning is not just about surviving. It’s about thriving.
Get clear on your financial goals. After you go through the step-by-step process above, check out some of these helpful resources to get your plan started.
Here are some popular apps for financial goals:
Mint is a practical app for financial planning. Something that people like about Mint is that the app allows you to set your financial goals. Since Mint is available as a mobile app, as well as on iPhone and Android, it’s super useful for everyone. You can also get it through windows and the internet.
Here are other popular financial planning and budgeting apps:
Next, let’s look at some popular apps for financial budgeting:
In a recent industry study, here are some rankings of apps:
And here are some more best of the most popular apps:
Best Apps For Financial Tracking
Remember the saying: an apple a day keeps the doctor away? Well, financial education helps keep credit cards and debt away. It’s true. Great planning is a result of constantly learning.
There’s more!
Here are some apps for financial education:
Congratulations on committing to improving your finances today.
You made it to the end!
Need help? Get in touch with us today. We’d love to help you create a custom financial plan so you can live the life you deserve.
Michael Whitman is an advisory representative offering investments and advisory services through Lincoln Financial Securities, Member SIPC. LFS-3080758-051120