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| Building a Strong Financial Foundation |
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Have a plan!
Having a road map and knowing where you're going brings a much greater sense of control over your destiny than moving blindly into the future. Developing common goals and having a common vision of your future together can go a long way toward helping you achieve your dreams.
An effective plan for actually making your financial goals a reality will help reduce any insecurity you may feel about money, and your ability to create it or spend it appropriately. Spending time discussing your current financial situation and your beliefs about money is an important part of building a healthy and viable marriage. Starting that process before you tie the knot can alleviate unnecessary surprises and build greater trust between you and your future spouse.
List 10 things you would like to achieve
Can you list ten things you would like to achieve in the next year, five years, ten years and beyond? This might include where you want to live, owning your own home, whether or not you want children and how many, how you will handle past debts (if any), job options and locations, educational opportunities, and so on.
Create a vision of your goals
If you think about it, all of these topics are related to money. It is important that you and your mate share similar values. Create a vision board by cutting out pictures of the things you really want and the goals you want to achieve. Add to it as your goals change. Keep it in a location of your home where you see it often. You're much more apt to take the power out of money that most of us give it if you establish a clear direction and realistic ways for getting there. Money should work for you, not against you.
Develop a financial plan with a professional advisor
Next it would be wise to create an effective financial plan. Sometimes this can be an overwhelming task and often it is easier to develop your plan with the help of a qualified financial advisor. Make sure the person you chose to work with not only has excellent credentials and years of experience, but is also someone you can relate to comfortably and a person you both trust. You might consider adding a certified public accountant (CPA) and an attorney whose expertise includes wills, trusts and estate planning to your team, as well. Surrounding yourself with strong professional advisors who support you and help you make wise decisions throughout your life can be an invaluable asset to building your future success.
Review, update and organize important documents
Although it is important to have well thought out and defined short and long term goals, any good financial plan needs to be fluid and should change with you as you grow and move through life. Start by taking a snap shot view of your current financial situation. Gathering all your data can be a challenge in itself. Current information on your individual and combined income and expenses, your bank accounts, investments, retirement funds and the like are only part of your picture. Documents such as wills, life, health and disability insurance policies, auto and homeowners insurance, and recent tax returns are also important papers to review, update and coordinate with your future spouse. If you haven't put some of these vehicles in place, this is a great time to begin that process. Your financial advisor may be able to help you with some of these products and if not, he or she should be able to recommend appropriate resources. It is important to ensure that you are both well protected on all fronts.
Develop a realistic budget
It's good to do this for your wedding and honeymoon costs too. Once you have a budget, track your income and expenses to make sure you're resources are being used to their fullest potential. Where you earn and spend your money says a lot about what you value in life. Saving for your future needs to be a priority and is often the last item on our list. Ask your financial advisor to help you figure out what you need to be putting away for your first house, your children's college education or your own retirement, so you have an incentive to build a solid financial base.
All of these topics are part of a good financial plan and can get a little challenging to discuss at times, so it's important to lighten up and make this process fun. Life is good, especially if you know you're on the right track. Financial planning and building a strong financial foundation can make the process and your life a lot more fun. Be patient and take baby steps. Remember, it's the journey, not the destination that brings you joy!
(Pris) Cilla McIntyre Payne
Financial Advisor
Matrix Group Financial Services
4620 N. US 31 North
Traverse City, MI 49686
Direct Line: (231) 938-3205
FAX: (231) 938-3013
priscillap@matrixfinancialservice.com
Matrix Financial Service
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