In many cultures and communities, it is taboo to talk about money. An unfortunate consequence of this is the knowledge gap that occurs between the people who are fortunate enough to learn how to manage their money and those who are not.
We hope to break this cycle by beginning a conversation around financial planning.
As the possibility of receiving social security benefits becomes increasingly unlikely for young professionals, it’s becoming more and more important for them to start thinking about how they will support their lifestyle once they retire.
This is why creating a financial plan is essential.
However, it can be unclear how to begin that process, and you may initially have far more questions than answers such as:
- What should you consider when constructing a financial plan?
- What if you intend to spend time out of the workforce?
- How should you account for taking care of parents or grandparents?
- When do you involve a financial advisor, should you have a financial advisor?
But first, to begin a conversation about financial planning, it is important that you understand your long and short term financial goals. Naming and quantifying your goals will not only ensure that you’re able to reach them, but it also makes them real in the present which helps you stay diligent. Also by understanding your goals you can estimate how much money you need to set aside now, in order to live the lifestyle you want in the future.
For most people, your goals can be broken down into the following 7 priorities:
Most people have 2-3 priorities that they focus on and use as a basis to begin building their financial plan.
To get an in-depth understanding of each of the seven priorities and how they may relate to your goals, please click the link below, “Defining What Matters Most To You.” I challenge you to spend time reviewing each priority and ask yourself what kind of future do I want and what matters most to me?
feature photo credit: Getty Images