It’s never too early to start planning for your future! A financial plan includes your current money situation, long-term monetary goals and strategies for meeting those goals. You can create a financial plan on your own, or you can create one by working with a financial advisor in NJ. The benefit to working with a financial advisor is that you can work together to develop a personalized plan that aligns with your long-term goals. 

As you consider putting together a financial plan, here are six important things to know. 

1. Your financial plan is built around your financial goals. 

You might think that your financial plan is based on the money you currently make, but it’s actually guided by your longer term goals. We recommend asking yourself what your money can do for you. Do you want it to pay off your mortgage? Help you retire early? Travel the world? By working toward the things that are important to you, your financial plan will feel intentional. 

2. You’ll need to track your money and where it’s going. 

Once you have a financial plan in place, you’ll need to keep track of your money. Our clients are often surprised to see how much money is spent on little things like Starbucks stops or lunches out. Seeing where your money goes can uncover ways to direct more money to your savings or paying down debt. 

3. Your employer might match your contributions.

One of the things your financial advisor in NJ will ask is if your employer will match your contributions. Sure, your 401K plan might take away some of your monthly earnings, but it’s worth putting into this account if your employer matches your contribution. This is essentially free money on the table. 

4. Emergency planning is necessary. 

Most Americans don’t have enough money in their accounts to pay for emergency situations. But, this changes with a financial plan. Your plan will force you to put away cash to handle unexpected problems so that you don’t have to turn to credit. 

You’ll start small - say $500 or so. Then your next goal will be $1,000 and so forth. Trust us, you’ll feel better having savings to fall back on if something happens! 

5. You’ll need to tackle high-interest debt. 

One of the first things your financial plan will include is paying down toxic debt, such as credit card balances, payday loans, title loans and rent-to-own payments. Interest rates are high on these loans and they can result in you paying two to three times more than what you borrowed. 

6. Investments will build your strategy. 

Finally, investments are an important part of financial planning in NJ. Some people think that investments are only for the rich, but they’re actually one of the best ways to build money no matter what you have in your savings. You can put money into a 401K plan or open a brokerage account. Your financial planner will help you determine what investments are best. 
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Looking to build a financial plan that makes sense for you and your family? Contact Leonard Financial Solutions to speak with a financial planner who will take the time to understand your needs and long-term financial goals.