By Marc Shaffer
I’ve heard many young couples say their life is too simple for financial planning. They think planning is something they’ll get around to when they’re older and thinking about retirement. Have you ever felt this way? This mentality could be keeping you from building a strong financial foundation for your future.
I think about the baby boomer generation. Many of these individuals worked a few jobs throughout their life that they stayed at for several years, owned a home and had a few children.
They worked, they saved, they retired.
I have friends who are decades younger than this group who have started companies, employ several workers, own their home and additional real estate, have set up trusts and other savings and investment accounts, and the list of their complicated financial journey goes on and on.
Age is not a factor in how important a solid financial foundation can be for you and your family.
As a young adult, you won’t be focused on the same planning issues as your parents, but that doesn’t mean your issues aren’t as important.
For example, your budgeting journey might currently include paying off student debt. Do you really want to carry that debt into your 30s and 40s? Financial planning could help you address paying down debt while still strategizing to save for future goals such as buying a house or trying a new career. Your journey toward starting a family might include infertility planning or adoption, both of which can have a larger than expected impact on your finances. Your career path might lead to you starting or becoming a partner in a business, which could bring about more unique insurance needs. Or perhaps, your journey looks more “traditional” but you still have a family and future to plan for that will arrive sooner than you think.
So, what are some elements of financial planning that you need to think about?
- Budgeting and Knowing Where You Stand®
- Saving and Investing Early
- Getting Out (and Staying Out) of Debt
- Preparing for Retirement
- Preparing for Emergencies
- Protecting Your Credit
- Insuring Yourself at Every Stage
- Budgeting for Education Expenses
- Prioritizing Your Health
You’ll want to make adjustments along the way, and you may decide the dreams of your past are no longer the dreams of your future. Planning young does not mean you have to have everything figured out. You can start planning right now and work toward building your solid foundation day after day.
Having an advisor on your team to help you set and work toward your goals from a young age can help you build a solid financial foundation. An advisor can help you solidify your goals and develop a plan to reach them, but can also help with financial literacy and be someone to turn to for answers to tough questions. You are not too young for a financial plan and you’re not too young to get help from a financial advisor.