Money has been one of the most intimidating issues that I’ve dealt with throughout the course of my life. Managing it, understanding its power, and learning how to grow it overtime.
There are so many details you have to keep track of when managing your own money – FICO scores, retirement savings, investments, how to purchase a home, and save for your kid’s college – just to name a few!
It’s overwhelming, sometimes scary, but very necessary to get a handle on your finances. As I get older, I see the results of bad financial planning among my family and friends; not because they didn’t try, but because of a lack of guidance and clarity about the role of proactive and long-term financial planning.
Recently there was a death in my family. While this was a heartbreaking situation for my family to deal with, what was even harder to digest was that my cousin’s spouse has not been taken care of in the way she should have been due to a lack of understanding about the importance of working a long-term plan.
My cousin regularly went to the doctor to manage his health, went to the dentist, had babysitters, and the list goes on. This relative worked for over 30 years at the same company, had retirement plans available to him and lived in the same house the entire time. What went wrong? In fact, I’m left wondering, “why is it so easy to ask for help in so many parts of one’s life except when it comes to money?”
While I’m upset about the position that my cousin has left his spouse in, I know that this story is not unusual. People tend to forget that financial planning isn’t just about themselves – it’s a process that affects other people in their lives. Having guidance and support as you navigate the tricky waters of long-term financial planning is key.
As I get older, I think about the issue of financial planning more and more. I own a property and would like to buy more over time. I’m looking to start a family, and real life is hitting me in the face right now.
It’s Scary
Effectively, planning your future doesn’t have to be so scary. There are lots of resources out there to help guide you through managing your personal finances and finding a professional to help you. For those of you looking for a professional to handle your finances, my favorite site is GuideVine.com because they are full service – you can call them and they will help you figure out if you need professional financial help, and if so, they will help guide you through the process of finding the right advisor. They make the process simple and approachable .
Financial planning isn’t just about you. Think about it how each of your financial moves has a ripple affect. Below are just a few of the financial tools that people have to choose wisely or manage well:
- Life Insurance – Having a good policy in place in the event that something happens to you.
- Health Insurance – While health insurance is mandated for everyone, figuring out which level of coverage is best for you makes a difference when dealing with a major illness.
- Roth IRA’s and Traditional IRAS – Which savings tool is appropriate for you and your family’s situation?
- Educational Savings – How much should you save for your children’s college expenses?
- FICO Score – How high or low your FICO score is determines how much you may end up paying on money borrowed for mortgages, cars, and more.
In retrospect, some of my cousin’s money moves don’t surprise me. I just wonder if my cousin would have made different decisions if he had support and someone to provide clarity, support, and encouragement when doing his financial planning?
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