Why People Don’t Do Financial Planning
The number one reason I hear people give for not having a financial plan is, “I don’t have any money to plan with.” I kind of get why someone might think that, but it’s based on a lie … Regardless of age, economic status, or even HAVING an investment account (much less how big it is), financial planning is helpful for everyone.
How about this analogy?
Let’s say you decided that you wanted to go to New York City. Now, you can hop in your car and just go and you might get there … or you might not. If you’re starting in New Jersey, your chances are pretty good. If you begin in California, it still might work but you’ll probably want to think about a few things – like having money for gas and picking a route that works better with the weather.
But if you’re starting in Paris and want to get to New York, that car just isn’t going to work that well for you.
The more ambitious your goal, the more helpful planning things out will be.
Financial Planning Required
With personal and business finance, things get more complicated. Money is an abstract so it’s far less intuitive than travel. And we don’t teach financial basics so you are likely much better trained at driving a car than managing your money.Note that this has NOTHING to do with whether or not you have an investment account. Everyone needs a financial plan.The average American family will earn around $2.5 million in their lifetime. Being just 5% more effective with that money means $125,000 extra in your pocket.
Everyone Can Do This
And a 5% improvement in cash flow is easy if you’re working with a financial planning professional who knows what they’re doing.
So break free of the lie. Financial Planning is for Everyone. You DO have lot’s of money to plan with. Start being strategic and intentional with your money today. Let me know how I can help.
This Wealth Health Curated Content was sent by email to our community days before we posted it to social media. Subscribe now to get future articles into your inbox before everybody else gets to see them.