A New Year And A New Financial Plan

As a financial planner, I can tell you that planning ahead is the key to meeting your financial goals. That being said, things can slip through the cracks during the hectic lives we all tend to live.

Financial issues tend to fall through the cracks of our lives because there simply isn't sufficent time to sit down, take a deep breath and figure them out. Ah, but there is. The last week of each year is a lull, which means you need to get cracking.

Getting your financial plan in order is all about being organized and updated. Organization is a subject we'll leave for another time, but updating your personal profile is something people consistently fail to do.

If you are being prudent, you should update your finacial outlook each and every year. What was sufficient or necessary last year, may not be this year. Then again it might. The only way to tell is to review everything.

This gives rise to the rather obvious first question to ask yourself. What changes occurred in the past year that I didn't anticipate? How did these changes impact the planning I have undertaken? Do I need to make changes?

So, what kind of changes are we talking about here? Well, the most obvious is the addition of a family member. No, not your bum brother. A child! Having a child is a glorious occasion, but it makes you grow up fast financially and personally.

The most obvious issue is your monthly cash flow. You have one more mouth to provide for and handle on a daily basis. Do you have room in the house for them? Do you need a new car or will you have room for your current family plus one?

Ah, but what about the long term? With a newborn, you need to consider how you will put them through college. What about life insurance in case something happens to you? You should have a will and trust. Now is a good time to update them.

The example of a child is an obvious example, but there are plenty of others. What if you lost your job during the year and now have a new profession? What if you started your own business? These are major changes.

At the end of the day, there is only one person responsible for your financial planning. Yes, you are that person. The end of the year is a good time to review your planning. You can do it during other times, but make sure to do it at least once a year.

About the Author:
Barry Waxler is a financial advisor with UFCAmerica.com. Click here for other unique 'year' articles.

See Also

Role Of Personal Financial Planning

Retiring with a firm financial foundation

7 Ways to Calm Your Mind and Get Control of Your Finances

External Links

Financialplan.about.com

Allbusiness.com

Learnfinancialplanning.com