A question that often goes unasked these days is, “When should you start financial planning?” These days many are living paycheck to paycheck trying to get by often finding it hard to put any additional money they might have into savings. Many often find themselves saying, tomorrow, but in reality, the best time is TODAY.
Finding Out What Your Financial Reality Is
Determine where your finances are currently at and where you would like to go with those finances. Do you want to invest in a house? Maybe a new car? Or even have a safety net in case of emergencies. As your situation progresses and you find your self having more and more things to put money towards is when this can get slightly more complicated, however putting something aside is better than placing nothing aside.
Creating a Budget outline
Before you go to see a financial advisor, you should collect the bills that you currently have and create a rough outline of what your budget could look like. Making sure you have a firm knowledge of what your bills are can help both you and your financial advisor create a solid budgeting plan for you to stick to while you put money into your savings. Start by writing out each bill that you have each month then going back to find out what each bill is every month. If you have a bill that is not always the same every month, putting down a max amount for what that bill could may help you in that situation, so you are a lotting enough money for that bill every month.
Seeking Out Help
So when should you speak to a financial advisor? What are they helpful for? Financial advisors can help when it comes to creating a strategy and helping you to eliminate any financial risk that you might have and help you to build your savings over time gradually. They are there to help you create things from budgets to saving for later in life when you plan to retire. You do not have to be rich to seek out a financial advisor. When looking for an advisor, seek out recommendations from colleges or family members that might have used a financial advisor. There are also various websites such as Garrett Planning Network that will allow you to search their listings for a financial advisor that caters to the middle class. There are also various “Robo advisors” that can help you if you are worried about a more cost-effective option; these often come in the form of websites and even apps.
Creating a budget to start saving for yourself is something that takes time, and you may have occasions where you may feel like you have taken a step back due to having to draw on that safety net account. Making sure that you are keeping track of your spending, bills, and sticking to the budget that you have for yourself will help. Just remember that the process takes time.
from Peter Plaut | Finance https://peterplaut.org/whens-the-best-time-to-start-financial-planning/