Hi Abby,

I want to create a financial plan that will help me achieve long-term success and stability. What questions should I ask myself as I start this process?

That is a great question! Creating a financial plan can be daunting, but it’s one of the best steps you can take toward securing your future. Whether you’re just starting or looking to refine your current plan, here are five essential questions to guide you:

1. What Are My Financial Goals?

Before diving into numbers, clarify your goals. Are you saving for retirement, buying a house or building an emergency fund? Defining your goals makes it easier to create a tailored plan and track your progress.

2. How Much Debt Do I Have, and How Will I Manage It?

Understanding your debt situation is key. List all debts and assess your interest rates and repayment terms. Are you focusing on paying off high-interest debt first? A clear debt repayment plan can free up more money for other financial goals.

3. Am I Saving Enough?

Once debts are under control, focus on savings. Do you have an emergency fund covering three to six months of expenses? Are you contributing to retirement accounts? Regularly reviewing your savings rate can ensure you’re prepared for both unexpected expenses and long-term needs.

4. How Much Risk Can I Tolerate?

Investing is a powerful way to grow wealth, but it comes with risks. Assess your risk tolerance based on your age, goals and comfort level. Are you more conservative, or can you handle market volatility? Your financial plan should align with your unique risk profile.

5. Do I Have a Plan for My Future Income?

Think about your income sources in the years ahead. Will you rely on a pension, investments or other income streams? Make sure your plan covers these to give you peace of mind about the years to come. 

These five questions can help create a foundation for a secure financial future. Don’t be afraid to consult with a financial advisor if you need extra guidance. A good plan not only brings peace of mind but also helps you achieve your dreams. Take charge of your financial future today and contact us to help you take the next step!