Anyone who has a source of income and out-going expenses should also have a structured financial plan intended to help them achieve their financial goals. This is especially true when you have a family to support and take care of as well. Unfortunately, reports show that far fewer lower- and middle-income individuals and families have a financial plan in place than those with incomes exceeding $100,000/year. If you are a lower- or middle-income earner and think your income isn’t high enough to justify having a financial plan, you could be putting yourself and your family into a dangerous financial position in the future. Here are five reasons everyone should have a financial plan, even if you’re not rich:
- A Plan Helps Establish & Achieve Financial Goals
When you don’t have a financial plan set in place, you are probably just earning, spending, and trying to save at random. A financial plan helps you first determine what financial goals are important to you, and a financial advisor helps you determine a strategy to achieve those financial goals based on your unique circumstances.
- A Financial Plan Helps Balance Budgets & Debt
One of the best ways to ensure you aren’t over-spending or spending frivolously is to have a financial plan. The basic cornerstone of any financial plan is creating and adhering to a budget. If you find yourself reaching the end of the month with your bank account drained and wondering where all your money went, then a financial plan can help. Having a financial plan can also help you eliminate credit-card debt and stay debt free. The first step to having a balanced budget without debt is knowing how much money you have coming in and where you are spending it.
- A Financial Plan Is Critical To Reaching Large Financial Goals
Are you trying to buy a house? Or do you and your spouse dream of being able send your children off to college without the stress of how they will pay for it? Do you know how much money you will need through your retirement and how much money you should be putting towards these savings now? A financial plan begins by defining the large financial goals that are important to you and then establishes a guide for you to follow to reach these goals.
- A Plan Protects You And Your Family During A Financial Emergency
Many people aren’t sure what they would do if faced with a financial emergency such as a major car repair or an unexpected loss of a job. Having an emergency fund is important to your overall financial plan. Industry experts always recommend having a minimum of six months to a year’s worth of daily living expenses saved in an emergency fund. While building this emergency fund will take time, having a financial strategy will help you know how much you should be setting aside and when, so you can build that fund.
- A Financial Plan Allows You To Care For Your Loved Ones In The Future
A solid financial strategy often involves the use of insurance to ensure your family is protected in the future. This can include life insurance, short-term and long-term disability insurance, and long-term care insurance. What would happen to your family if you suddenly lost your income because you were unable to work due to a disability? What would happen to them if you suddenly passed away and they didn’t have your income to rely on? How would your family cover the cost of long-term care if you needed to be put in a nursing home or assisted living facility, and what financial strain would that place on them? These are all questions that can be addressed with a financial plan using insurance products.
Take The First Step To Achieving Your Financial Goals Today!
Contact Focus Wealth Strategies, LLC. to take the first step towards reaching your financial goals and protecting your family’s security in the future. We believe that everyone deserves solid financial advice and guidance—even when they are just starting out. We have no account minimum requirements and offer a variety of services and products with different fee schedules. Call our Brandon office at (813) 305-0411 or our Bradenton office at (941) 776-0589 or complete our online contact form to schedule your free initial consultation with one of our financial advisors!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.