In a month or so, America heads into the summer “vacation” season and it makes sense that people are busy planning their getaways. Having a financial plan is a lot like having a travel plan in that it identifies where you’re going, how and when you’ll get there, how much it’ll cost, and things to do along the way. Like planning a vacation, your financial plan can be loosely structured or highly detailed based on your individual needs. However, having no plan at all could leave you stranded in the middle of nowhere.
A recent Household Financial Planning Survey conducted by the Certified Financial Planner Board of Standards found that only 31% of financial decision makers in families say they have created a comprehensive financial plan either on their own or with professional help. Creating a financial plan helps you see the big picture and set long and short-term life goals, a crucial step in mapping out your financial future. When you have a financial plan, it’s easier to make financial decisions and stay on track to meet your goals.