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With all that’s been happening here and abroad, Wilbert Guilford’s Financial Planning for the 99% has become an even more critical and important read! With its fine-tuned delivery and easy-to-follow explanations, planning with a point can be more productive and achievable.
PLANNING WITH A POINT
Save up money will always be good advice. But if you want to do it consistently and with energy, you need to have a point; you need to have a goal. Just saving up money for money’s sake helps you shore up your finances, but there needs to be something else.
People have a lot of ideas with what they would like to do if they had X amount of money, but these aspirations often remain just that–just wishes that can’t be substantiated properly because they lack the weight of being a concrete goal and the means to achieve them through a plan.
True financial empowerment comes not from just simply wanting a thing or two, but from “planning with a point.”
Having a strategic approach that properly aligns your deepest wishes with tangible, achievable objectives can help you move mountains.
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STEP ONE: Identifying Your Goals
If you want to have a good plan, you need to have something to plan for. Once you’re aware and have made concrete your financial wishes, the next step is to translate these into achievable items. Saying you want a car is too vague. But, clarifying that you want a 1973 Century Regal Colonnade Hardtop Coupe, though, is much more actionable.
From there, you can begin to look over your finances and learn how to better apportion your money. Understanding where your money is going and what resources you have available is essential for setting realistic and achievable goals. You don’t just want to put money into your savings because you want to get this one thing. You have to be careful, so as not to divert funds away from necessities.
This initial assessment might reveal areas where spending can be optimized, or potential income streams can be explored, laying the groundwork for effective financial planning.
STEP TWO: How to Plan SMART
When you already know what you want and have some clarity with your current financial situation, now is the time to plan! If you’ve been through some seminars and talks about finance and whatnot, you may have come across the SMART framework.
SMART is a really easy way to categorize and align your goals. It’s an acronym that stands for Specific, Measurable, Achievable, Relevant and Time-bound.
- Specific. Your goal should be well-defined and unambiguous. Don’t pussyfoot about!
- Measurable. You need to be able to track your progress. How will you know when you’ve achieved your goal?
- Achievable. Your goal should be realistic, given your current resources and capabilities. While ambitious goals are motivating, setting unattainable targets can lead to discouragement. Consider your income, expenses, and potential for increasing savings or income.
- Relevant. Your goal should align with your overall financial wishes and values. Does saving for a down payment contribute to your desire for a stable home? Does investing for retirement align with your wish for long-term financial security?
- Time-bound. Every goal needs a deadline. When do you want to achieve it? While there are things that can be open-ended, having a concrete end time is much better.
STEP THREE: Charting the Course
With your goals now clearly defined and refined, you can now start planning with a point! The first thing you have to do is break down your goals into smaller and more manageable steps. Rome wasn’t built in a day, as they say. It took a lot of work and effort–and that’s what you need to do, too.
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“Planning with a point” is not just about setting financial goals; it’s about intentionally aligning your deepest wishes with concrete, actionable objectives. By knowing what you want, using the SMART framework, and developing a roadmap, you, too, can transform your aspirations from fleeting dreams into tangible realities.
Having a proactive and strategic approach empowers you to take control of your financial future, moving from a constant state of uncertainty to one of clarity, confidence, and, ultimately, the realization of your most cherished financial wishes.
Financial Planning for the 99% helps you see things from a clearer perspective where it concerns your finances. Learn more by contacting Wilbert Guilford today!
