You have a financial plan, right? I mean, you have put some thought into your future, retirement and how you are going to reach a level of financial security, haven’t you?
I have to ask, because the numbers show that most people don’t have a financial plan at all… and those that do might just have the “plan” in their head.
I just read a good article about this topic. Here is an excerpt:
“One interesting finding in the recent RBC poll was that one in three respondents who reported having a financial plan admits that the plan is just “in their head.” As a financial planner, I always thought these financial plan survey numbers seemed high given how few people seem to have a written financial plan, but perhaps the truth has now come out. That is, not only do many people not have a financial plan, but even many of those who think they do are in reality winging it to some degree. For some consumers, their financial plan may consist of no more than an investment proposal from a mutual fund salesperson or a few speculative stock picks in their discount brokerage account.”
The main premise of the article is your financial plan should be an ongoing process, not just a one-time event, and it certainly needs to be written down as opposed to just being in your head.
My goal is lifelong financial security, and here is my plan:
Sometimes I get the feeling that when I talk about budgeting, people are getting the wrong idea. Budgeting has the same negative connotations as the word “dieting”. It brings thoughts of sacrifice. It is something that might be necessary… but it is not going to be agreeable.
In my opinion, budgeting is not just about where you money is going. It is also not just about spending less money and making sacrifices. Budgeting is an opportunity to figure out what kind of life you REALLY need to be happy… and what you need to do to ensure that life in the future.
So, budgeting is not just about cutting costs or spending less. Budgeting for me is figuring out how much money you need and where you will spend that money in order to live a satisfying life AND have money left over to invest in your future.
And it is that second part that is often forgotten and ignored.
If you want to reach a level of financial security, whatever that might mean to you, you need to invest in your future. You cannot just spend every penny you make on things that make you immediately, and often fleetingly, happy.
In short, financial planning is important. And something so important should be written out and revisited from time to time.
I treat each of my online businesses and trading accounts like a business. These are businesses that can produce a lifelong income because it is so easy to do and only takes a few minutes a day. And by treating my money making activities as a business, I am constantly reviewing my plan to take stock in where I am and where I want to be.
I believe in setting up businesses that can bring in an income for life. And the easiest businesses to set up and run are online businesses and trading businesses. Each business has a goal and a business plan. And that is how I am going to reach financial security.
So, I ask again… “You have a financial plan, right”?