Financial Planning = Lifestyle Planning

We are all so busy living day to day, we often don’t take the time, or see the value in looking at the big picture. Or we are afraid of what that picture will look like so we actively avoid thinking about it.

The beginning of any plan, financial or otherwise, involves having a vision for your life, both now and in the future. What would you like to do when you stop working at your full time job? Are you someone who is content to be at home surrounded by familiar things, with family and friends? Are you someone who plans to travel the world? Will you want to work part-time at some future date or do something you are passionate about? You may want to do missionary work overseas that you will need to fund yourself. You may simply want to be free of the necessity of making a living. More time for volunteer work may be your goal. Your choices are only limited by your imagination, and the financial wherewithal to make them happen.

You make financial choices every day. Unfortunately, many are made without considering the long term implications of those decisions. There are so many temptations out there to part us from our money, it is often difficult to resist. So how do you manage to build out a sensible financial plan that will see you able to enjoy today, without sacrificing your future?

First—The Vision
Second—Knowing Where Your Current Earnings Go
Third—Reducing Truly Unnecessary Expenses
Fourth—Disaster Planning (the just-in-case plan)
Fifth—Planning for Future Expenses

Lifestyle Planning means generating that vision, understanding how your current and future decisions will impact that vision, then setting up a written plan or path to follow to get you where you want to go. This sounds easy, and it can be if you are committed to making your life better and more balanced. It can be challenging in that it usually means making difficult short term decisions today, for a better future tomorrow. The good news is the sooner you start, the better chance you have for success, and the less sacrifices you will have to make. So brainstorm with your partner (if you have one), write down your vision and take it to your financial advisor to build you a plan.