The Best Time to Start a Financial Plan is Now

by Tricia Bush, CPA, CFP^®, Partner, Bestgate Advisors

Hi, I’m Tricia Bush, CPA, CFP^®, and I’m here to share with you what I’ve learned from working with successful retirees to help lead you to your financial and retirement goals.

One of the overriding themes I’ve seen of those who have been successful is that they have developed a financial plan themselves or have worked with a financial advisor to create their financial plan.

So, how do you get started?

In the realm of financial planning, there’s no shortage of advice and strategies. From Dave Ramsey’s rapid debt payoff method to the notion of leveraging debt for investment—the options are endless. But amidst this sea of information, how do you determine what’s right for you? The answer lies in understanding your own financial goals and priorities.

Take a moment to reflect on what truly matters to you and your family. Are you feeling overwhelmed by credit card debt? Perhaps you’ve recently come into an inheritance and are faced with new investment decisions. Or, maybe retirement is looming, prompting a shift in your financial mindset. Each circumstance calls for a customized financial plan, tailored to your specific needs.

Once you’ve identified your priorities and envisioned your financial destination, the next step is to assess your current financial landscape.

In today’s world, it’s not uncommon to have accounts scattered across various institutions and platforms. While this setup may offer convenience, it can obscure your overall financial picture. Listing all these accounts in one place can provide a clearer view of your overall financial health. By calculating your net worth—total assets minus liabilities—you establish a baseline for progress.

With your financial baseline established, it’s time to examine your cash flow, commonly referred to as your budget. This serves as the bridge between your current situation and your financial goals. Maybe you have some discretionary income each month; yet, without a budget, it’s easy to fritter it away without a second thought. While the occasional splurge at Starbucks for that Venti Caramel Macchiato with the extra shot of espresso might seem harmless, aligning your spending with your priorities can lead to greater financial security.

For instance, if your top priority is saving for your child’s college education, earmarking those funds for a 529 plan can set you on the right path. A common theme I’ve seen with the successful retirees I’ve worked with is that they had a good handle on their budget.

One of the greatest benefits of having a financial plan is the peace of mind it brings. Knowing that you’re on track to meet your retirement savings goals, or not pulling too much out of your retirement accounts, can alleviate stress and allow you to enjoy life’s pleasures without any guilt. However, just like sticking to an exercise routine, some individuals may find it challenging to stay motivated on their own. If financial planning feels daunting or you struggle to stay the course, consider seeking guidance from a financial advisor.

Contrary to popular belief, financial advisors aren’t just for the wealthy or the Wall Street elite. They come in various specialties, each focused on helping you achieve your unique financial objectives. Whether your goal is retirement planning or debt management, finding the right advisor can provide invaluable support and expertise.

Whether you choose to go it alone or enlist the help of a financial advisor, the important thing is to take that first step toward securing your financial future. By crafting a financial plan tailored to your needs and aspirations, you’re taking control of your destiny and setting yourself up for success.

In closing, I hope this article serves as a catalyst for action, inspiring you to embark on your financial planning journey with confidence. We will continue to dive into more detail about different financial planning topics in future issues, but as you are working on your financial plan, if some topics or questions come to mind, send them to The Catoctin Banner at [email protected], and we’ll see if we can answer your questions in a future issue.

Remember, regardless of where you are on your financial path, it’s never too late to start planning for a brighter tomorrow.