Much like physical fitness, financial planning is a process. It involves:
- Developing recommendations
- Implementing those recommendations
- Monitoring and adjusting actions as needed
Having a number bank accounts, credit cards, loans (student, auto, mortgage, business, and credit card), investment accounts, insurance policies, and legal documents means we need to gather and organize them to see how your financial data looks big picture.
This step also involves setting and prioritizing your short-term and long-term goals. What are your hopes, fears, values, preferences, and attitudes? What are your non-financial goals?
It’s like working out; making it to the box is half the effort.
During this step we analyze and evaluate your current financial status. . What is your cashflow situation like? Did you take out a personal loan for the business and how are you handling that? Are you paying too much in tax or do you owe tax? What’s your experience with investments? Are you planning to have a baby, buy a house, and/or open another box?
Almost every decision in life has a financial consequence. During this step of the process, we determine where you are now in relation to where you want to go and what is the impact of leaving things the way they are.
Now that we know what you have, where you stand in relation to your goals, and have the programming in place to get there; we can get to work. Much like in fitness, your financial success is not determined by one or two major financial decisions but rather by a series of small, incremental steps, that bring you a step closer to your goals. If you want to squat heavier, you have to work on your squat. If you want to have more disposable income, you have to work on your cashflow. Whatever your goals may be, taking small, incremental steps over a period of time is a sound strategy to achieving those goals.
Like in CrossFit, it’s important to realize that you are not competing against others, you compete against yourself. The goal here is not to see how you stack up against the Jones’, but rather where you are since the last time we took a measurement. Is your financial situation improving? Are you getting closer to reaching your goals?
As life changes, so may your goals and priorities. During this step of the process, we monitor and adjust actions as needed.