By: Angele Gerten – Affiliate/Community Communication- Staff Writer
Water boils at 212 degrees Fahrenheit. Interesting fact, but how does that apply to our finances and money habits? Glad you asked. People often ask me, where do I start? What is the best thing to do or habit to change. The best place to begin involves two things – and it’s not making extra debt payments or opening a savings account. It’s accessing where you are, and future goals.
You may have heard that a watched pot never boils. It takes time, and the funny thing is you can get so close to the boiling temp of 212, but if you take a pot of water off the heat at 210, or give up at 211, it’ll never boil. The same applies to our financial goals.
If you recognize that you are in debt (current state) and decide you would like to be debt free (future goal), the next step is to get a plan in place and get to work on that plan. Where I see most people struggle isn’t with this phase – it’s actually with the giving up on the plan before they hit their goals. They move the pot off the heat because it’s taking too long. They have no idea how close they actually are to boiling.
It can be painfully slow to make changes one degree at a time. Keep your focus on the future goals you set, consider reviewing them daily. If you’d like to retire early, get out of debt, fund your kids’ college, continually remind yourself of those things. Visualize how great it will be to pay off the mortgage, to watch your child on graduation day, or turn in your retirement notice – that will help you on the day-to-day decision making, when it feels so far away. Get your plan in place, review your goals daily, and don’t quit when it gets tough. You may only be one degree away from your boiling water.
Five Benefits of Financial Planning for Women
Women often juggle many important duties. They are caregivers, business owners, household managers, community leaders and volunteers. Balancing these varied responsibilities often affects their financial needs and outlook, and it can present some challenges to reaching their personal and financial goals.
Working with a Certified Financial Planner professional can provide some clarity for women who may feel overwhelmed or uncertain about their finances. CFP® professionals are trained to provide competent, ethical financial advice and can be trusted advisors who help you see the bigger financial picture.
Here are five benefits of holistic financial planning for women.
- It alleviates financial stress. Changes in employment, family circumstances or housing are just a few of the things that can cause concerns about your financial future. A CFP® professional can help you weather these ups and downs, recommending sound financial strategies that keep you on track to reach your goals.
- It supports career transitions. Many women take time off from their careers to care for children and family members. Millions of others may be reevaluating their current jobs against their needs and values, potentially leading to a career change. These decisions have important implications for your income, earning potential and retirement savings. A CFP® professional can help you clarify your priorities and plan for your next career move.
- It helps your business thrive. If you own a business (or would like to), a CFP® professional can collaborate with you to create a financial plan to guide you through the start-up phase, company growth and expansion, and succession planning.
- It lets you determine your legacy. Estate planning is important for all women, but especially those who have considerable assets, such as real estate, insurance policies and retirement accounts, to bequeath. A CFP® professional can help you develop a thorough estate plan that fulfills your financial desires.
- It gives you confidence in your tomorrow. Creating a holistic financial plan that helps you establish short- and long-term life goals is a crucial step in mapping out your financial future. When you have a strategy and a financial plan, it’s easier to make financial decisions and stay on track to reach your goals.
Visit LetsMakeAPlan.org to find CFP® professionals in your area or email Angele Gerten. A trustworthy financial advisor will help you focus on your needs and concerns and effectively manage your financial future.