5 Reasons a Financial Plan Isn’t Just for the Super Wealthy – October 7, 2020
Much like a roadmap charts a path from point A to point B, a financial plan is the roadmap that helps get you to your financial destination. A comprehensive plan removes the guesswork.
Yet, according to Charles Schwab’s 2019 Modern Wealth Survey, just 28% of Americans have a written financial plan.
Benefits of a financial plan
- You are forced to define your goals.
- The plan gives you written steps to follow. For example, how much should you be saving each month.
- The plan defines the type of investments best suited to your goals and tolerance for taking risk.
- You can regularly measure progress toward your goals.
- The plan greatly increases your confidence that you are on track to meet your financial goals. Per the Modern Wealth Survey, 56% who had a plan felt “very confident” they would reach their financial goals, vs. 17% of those who didn’t have a plan.
Investors corner
Without written goals and guideposts to measure your progress, successfully reaching your financial goals becomes far more problematic.
As Ben Franklin is credited with saying, “If you fail to plan, you are planning to fail.”
Created 2020-10-07 14:58:51
