A quality financial plan is more than just numbers in a spreadsheet. Typically for those numbers to become a reality, it requires four things.
- The first is knowledge. Most financial plans are unsuccessful if you don't follow them. One of the primary roadblocks is a plan that's too complicated to understand, so knowledge is key. Ensure you clearly understand the plan's beginning, middle, and end. A complicated plan is usually not sustainable because you will lose sight of the end goal.
- Then there is Process: Yes, a plan needs a process that you can follow. Identify the steps needed to accomplish the plan. Also, identify benchmarks and milestones along the way. Your process will also help navigate the emotional rollercoaster of bull and bear markets.
- Third, we need to consider the importance of Habits: To accomplish your plan, you may need to start or stop a habit. Identify what those are and take the necessary steps to create them. Typically, they will not develop or change on their own.
- And last but not least - Passion: Unless you have enough passion for following your plan…well…you probably won’t follow it. Begin with the end in mind but make sure you are passionate enough about the end goal to stay the course.
Starting a financial plan can be exciting...finishing it can be rewarding. But we often get lost in the middle. Incorporating these four tips will go a long way to keep you motivated throughout the journey.
Any opinions are those of Stonegate Financial and not necessarily those of Raymond James. This information is intended to be educational and is not tailored to the investment needs of any specific investor. Every investor's situation is unique, and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Insurance relates to the timely payment of principal and interest. Insurance does not guarantee market value or protect against fluctuations in bond prices.