How to Make Financial Plans for the Future

posted by Stacie on March 22, 2020 // 34 Comments »

How to Make Financial Plans for the Future

Money is not an easy thing to talk about. I find it deeply personal to discuss finances with anyone. This includes my husband and he is the same way with me. We have both been dual income earners since the beginning of our relationship and once we got married, he was fine with letting me handle the finances. Probably not the best move but I got us through 17+ years. However, I was so busy building a life that I loved and making short-term plans, that I failed to plan for our future. We both did. I mean, we have a couple of IRAs each from previous jobs – nothing huge at all. We also have a few small college accounts for the kids, but that's it. We hope that How to Make Financial Plans for the Future post resonates with you.

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Talking about money means talking about discussing what you are doing right and what you are doing wrong. It means setting personal goals and being held accountable. It means taking a hard look at exactly what you are doing right now and where you want to be in the future. This can be tough for anyone. Writing about it is hard. I feel exposed but I am ok with being a cautionary tale because I believe we are on the right path.

How to Make Financial Plans for the Future

Just start.

Seriously this is crucial. Taking that first step or any step toward your finances is a big deal. Now make it a habit. Once you decide to start this planning, commit to it and schedule it on your calendar like we did. We discuss finances every week at the same time we can make certain that we are meeting our goals. These meetings also make it easier to discuss our finances.

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Save more. Or begin saving now.

Not currently saving? This will be easy then. Save $5 a week just to get into the habit of putting money aside. I had an accounting professor who told our class, “If you cannot live on what you are making now, live on $5 less.” That was profound to me because I immediately started saving money. As a young 20-year-old, of course, I was living paycheck to paycheck as I worked my way through college. But his advice caused me to put my savings first and when I bought my first house years later, I could put 20% down with my savings.

Budget. Weekly. Monthly. Yearly.

We decided to do several budgets when figuring out what works best for our family. We budget weekly, monthly, and yearly. This helped us identify times of year when we spend more and when we need to save more. For instance, our gas bill triples in two to three of the winter months so I needed to adjust the budget for these added expenses when it's colder outside. Doing this yearly budget led us to our next step.

How to Make Financial Plans for the Future

Reevaluate and reduce expenses.

Once we saw what we spent yearly for natural gas, we decided to price shop to see if we could get a better rate. We did and ended up reducing our costs by 25%, then did the same thing with our cellphones and cable plus scheduled an energy audit with our power company. We also priced out some items that we have subscriptions for and saved a little money.

Get help from a professional.

You can't talk with someone you aren't comfortable with and so finding the right financial professional is important. This is going to be a long-term relationship and with something lasting for years, both parties should genuinely like each other. Mutual trust and respect are important in any relationship. We were thrilled to find that instant connection with our financial professional, Lola Gena Pappas.

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How to Make Financial Plans for the Future

What I especially loved about our Prudential Financial Professional is that she immediately made us feel comfortable. We met her at my favorite local deli. She brought up my fears and addressed them before I had the chance. She carried the conversation which I loved because I was already nervous about the topic so being led by her was what we needed. My husband chatted with her as well and asked a few questions. We left this meeting feeling like she could help us. Most importantly, we walked away knowing this was something we could do. We've got this. We hope that you find this How to Make Financial Plans for the Future post valuable. Good luck!