Summer Newsletter – 2016
Setting & Managing Financial Goals
“Don’t tell me where your priorities are. Show me where you spend your money and I’ll tell you what they are.” James W. Frick One of the first steps in financial planning is setting goals. It is not just important to establish goals, but also to manage them once they are established. Staying focused isn’t easy, as life in general keeps us all extremely busy. Daily work and chores can get in our way, or at the very least side track us from meeting the financial goals we set. Goals can be classified in three categories: short, intermediate and long. All three types of goals must be reviewed fre-quently. Short-term goals are things you want to accomplish in one year or less; because of this, these goals must be reviewed monthly or even weekly. Intermediate-term goals are things you want to have accomplished within five years, while long-term goals are further in the future. Intermediate and long-term goals should be reviewed annually.
Many of us would love to have it all, but that usually only works for the top 1% of our society.
Income is extremely important for funding your priorities. It is wise to make the most of your paycheck. Living paycheck to paycheck will not help you accomplish your financial goals. What will help is setting a budget. Budgeting has a negative connotation in today’s society, but it shouldn’t. A budget, or cash flow analysis, should not be thought of as a punishment for things you cannot have, but rather as a tool to allow you to become a better spender. It can allow you to enjoy truly what is important to you. Three additional suggestions about budgeting: 1. Include saving for an emergency fund. 2. Eliminate all credit card debt and only purchase what your paycheck can support without put-ting you into debt. 3. Impulse spending should be limited. We recommend limiting your financial goals to no more than five so that each goal is achiev-able and it doesn’t become overwhelming. It’s okay to change your mind about your goals, but always keep a list on hand to keep you focused. If possible keep that list in a visible place. To help you achieve your goals we suggest the following: * Put your goals in writing and be specific * Rank your goals in order of most importance * Have a start and completion date * Know what the benefits will be * Know your method to obtain your goals * Know your obstacles and how to get around them * Review your goals regularly * Complete a goal cash flow worksheet If you wish to explore ways that we can help you define your goals and lay out a plan to pro-vide the best opportunities to achieve those goals, please contact our office to schedule a fi-nancial planning appointment with one of our CERTIFIED FINANCIAL PLANNER ™ Profes-sionals.
We’re very excited to announce that we have recently purchased a property for RFC Financial Planners. Renovations will start soon on our new home and we’re planning for a first half of 2017 move. Below is a design of our plans after our work is finished and we’ll share more news as we move forward