While April 1st is the annual celebration of April Fool's day - this year, don't let your financial plan, or lack thereof, make a fool of you. While everyone is on their own unique path towards financial freedom, there are several mistakes that a lot of people make.
Below are the most common mistakes we see in regards to financial planning:
1. Not having a plan and goals in place
It is a mistake to rely on luck when it comes to your finances. Having a plan
in place, in terms of where you want to end up when you are ready for life
after pharmacy, can make achieving your goals simpler. Additionally, make sure
your financial goals are SMART (specific, measurable, attainable, relevant, and
time-framed) to help prevent them from falling short.
2. Assume that your financial plan doesn't or can't change
No one can prepare for life's twists and turns, and regularly reviewing your financial plan to help accomodate them is a good idea. Even if you only set aside time every few years, doing so will help you re-evaluate where you want to be and what it will take to get there.
3. Delay when you start to save
One of the first rules in saving, is to start NOW. Develop a budget to track your income, expenses,and savings and stick with it. The sooner you
implement a savings system into your overall financial plan, the better off you will
be in the long-run.
4. Skipping saving while you're paying off debt
Skipping savings payments, while easy in the short term, can lead to bigger financial deficets down the road. If possible, it is better to lower your savings contribution temporarily, than it is to skip it entirely. Once the debts have been paid, be sure to raise your amount dedicated to savings back up so you can continue to achieve your initial financial plan goals.
There are a plethroa of online tools available to help you put together a financial plan, and we have one at your disposal. Click the button below to download our Financial Plan tool that will help explain how to properly set up a successful financial plan or give us a call and we can help you review and figure out your next steps.