October is a special month in the world of finance – it's Financial Planning Month. Woo hoo! Break out the sparkling apple cider and let’s get to celebrating!
Just kidding. But … not really?
This month, we celebrate the art and science of managing our financial lives. And that means we’re here to guide you through financial planning and why we believe it’s so necessary to living the life you want to live, and we’ll provide practical tips that can truly elevate your wellbeing.
First, the facts.
Financial Planning Month, observed every October, may not have a long and storied history, but it carries a profound message. It was officially recognized by the Financial Planning Association (FPA) in the United States in 2004. The idea behind it is simple yet powerful: to encourage individuals to take control of their financial futures.
Now, let's delve into why this matters.
Financial planning isn't about crunching numbers or following a rigid budget; it's about empowering you to dream bigger and live better. It's a roadmap to the life you've always wanted, filled with opportunities, experiences, and security.
So…how do you do it?
1. Make an appointment with a wealth advisor
No, this isn’t a self-serving call to action! This truly is the first step to figuring out how to define your dreams. (Need a wealth advisor? Well……….612-481-4395)
2. Understand where you are today – and how you got there
We also call this creating a “Realistic Roadmap.” How can you define your dreams and your goals if you don’t have a solid understanding of what you’re working with when it comes to your finances? Think of an artist: they don’t always know what they’re going to create. But they do understand how to use the materials in front of them and they understand what they’ve done in the past.
Your realistic roadmap involves creating a financial plan that helps you set achievable goals and lays out the steps to reach them. Think of it as your personal GPS for life. It guides you through financial decisions, from budgeting and saving to investing and retirement planning.
3. Define Your Dreams
Financial planning is more than just setting aside money for a rainy day. It's about understanding what truly matters to you. Take a moment to imagine your ideal life. What are your dreams and aspirations? Whether it's traveling the world, buying a home, sending your kids to college, or retiring comfortably, financial planning can make those dreams a reality. So – dream big! Grab some paper and a pen, fire up that laptop and start tapping away. Don’t censor yourself – let yourself DREAM BIG in October. Keep in mind – the process of the plan will also help you reveal your dreams. So if you’re stumbling and find it stressful to “dream big,” let’s start with the plan.
4. Invest in Your Future
Investing is a powerful tool that can help your dreams and your purpose grow over time. Investing is about investing in YOU – not in someone else’s plans for your future. And working with someone who understands the RIGHT investment strategy is essential to creating a brighter future for yourself and your loved ones.
5. Financial Knowledge is Power
Knowledge is power. The more you understand about your finances, the better equipped you are to make informed decisions. Take advantage of resources, workshops, and advisors like us to expand your financial literacy. For example, do you know what a money market is and why or why not it might be a good investment for you? Do you know why or why not a particular stock might be a good option for your future financial dreams? Why would you want to own a bond? Why WOULDN’T you want to own a bond? You get the picture. The more you know, the more confident you'll feel about making decisions about your financial future.
6. Decision Making
In reality, every decision we make involves more than 15 different factors. However, the human mind can effectively process only about 6 to 7 of these factors at a time. This limitation underscores the significance of financial planning. A well-crafted financial plan can accommodate and consider numerous variables beyond what our minds can handle alone. When you collaborate with a financial advisor, you gain the advantage of assessing your situations with greater knowledge and a deeper understanding, thanks to their expertise.
7. Review and Adjust
Life is constantly changing, and so should your financial plan. Regularly review your goals and make adjustments as needed. Maybe you've achieved a milestone, or your priorities have shifted. A flexible plan ensures you stay on track and continue to elevate your wellbeing.
In essence, this month, Financial Planning Month, should be about recognizing the transformative power of financial planning. Take the rest of October and start to think about embracing the idea that you have the ability to shape your financial future, to dream bigger, and to live better.
At WatersEdge Wealth Management, we believe that comprehensive financial planning is the key to helping you truly live the life you want to live. It's not just about numbers; it's about your hopes, your dreams, and your happiness. So, let's embark on this journey together, and together, we'll elevate your wellbeing and make your dreams a reality. Financial Planning Month is a reminder that your financial wellbeing is within reach, and we're here to help you seize it.
Dream bigger, live better, and embrace the incredible possibilities that financial planning brings. Here's to your brighter future and the life you've always wanted.