5 Reasons You Need a Plan — and What to Do About It
By Tracy Byrnes, Lebenthal Global Advisors
October is National Financial Planning Month and it’s the perfect reminder that financial health deserves the same care and attention as physical and mental health.
A strong financial plan gives you confidence, direction, and peace of mind, no matter what the markets — or life — may bring.Here are five reasons to have a financial plan — and some simple actions you can take this month to stay on track:
1️. A Financial Plan Turns Goals into Action
A financial plan turns goals into action and dreams into direction. What are your long-term goals and dreams? Really think about it. And think big! Why not? Then the plan is built around those goals and dreams and can help you save, invest, and stay accountable to them.
Action: Write down your top three financial goals for the next 5–10 years. Attach a dollar amount and a target date to each.
2️. It Helps You Prepare for the Unexpected
Life happens. From job changes to unexpected medical bills, a plan cushions those surprises before they become setbacks.
Action: Check your emergency fund. Have you dipped into it lately? Then it’s time to replenish it. Aim to cover 3 to 6 months of expenses in a liquid savings account.
3️. It Keeps Emotions Out of Decisions
Markets move, the headlines seem to get crazier by the day, but your plan keeps you grounded. Long-term goals shouldn’t be derailed by short-term noise.
Action: Schedule a portfolio review this month to ensure your investments still reflect your goals and risk tolerance.
4️. It Brings Your Financial Life Together
One of the reasons I love doing financial plans is that your finances don’t live in silos. You need to see everything altogether. A good plan connects your budget with your investments, with tax planning, insurance policies and estate planning, so everything works together.
Action: Have you updated your budget and/or debt strategy lately? If not, let’s revisit that.
5️. It Builds Confidence and Peace of Mind
Knowing where you are today, and having a roadmap for the future, replaces stress with clarity. And it gives you confidence to stay on track and keep going.
Action: Set up your year-end financial review. It’s the perfect way to finish strong and start the new year with confidence.
And a last big reminder I tell all my clients: A financial plan is NEVER carved in stone. It is fluid and constantly changing — because so is life. And that plan isn’t about perfection and getting everything right the first time. It’s about progress and agility and constantly needs to be reviewed.
So this October, take the time to review, refresh, and recommit to your goals.
Please don’t hesitate to reach out to me at tbyrnes@lebenthal.com if you need help with your financial plan or if there are particular topics you would like me to address.