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October is Financial Planning Month

October is Financial Planning Month

Only 33% of Americans have a written financial plan, according to Schwab’s Modern Wealth Survey. Of the rest, almost half said they didn’t have enough money to make a plan worthwhile. Others said it was too complicated, or they didn’t have time to develop a plan.

What is financial planning?

Financial planning is a process people use to manage their money and reach their financial goals effectively. It involves assessing your current financial situation, setting specific objectives, and creating a roadmap for how to reach those goals.

That definition in mind, it seems strange that so many Americans feel it’s not worth the time to plan for their financial future.

Financial planning is not just a financial strategy; it’s a life strategy. It empowers individuals and families to take control of their financial futures and make informed decisions.

If you do not yet have a sound financial plan, use this month to explore some planning opportunities:

  • Explore investment opportunities: Use October to look at different investment opportunities that fit your budget. It is important to invest in your future.
  • Use a retirement calculator: It’s never too late to start. If you haven’t started retirement planning yet, find a calculator on the internet and start today!
  • Track your savings and spending: Use an app, Excel, or a diary to track your savings and spending. Manage your money better and identify any habits that need to be changed.

Key components of financial planning

Goal Setting:

Financial planning begins with setting clear and measurable financial goals. Goals can be short-term or long-term.

Short-term goals include saving for a vacation. Long-term goals include retirement planning, buying a home, or funding a child’s education. Setting specific goals provides motivation and direction for your financial decisions.


“Creating a budget is a fundamental part of financial planning.” says Glenn Werner Vice President of Investment at David Lerner Associates. “It helps you track income and expenses, ensuring that your spending aligns with your goals. A well-structured budget allows you to identify areas where you can save money and allocate resources more effectively.”

Debt Management:

Financial planning includes strategies for managing and reducing debt. This involves prioritizing high-interest debts, creating repayment plans, and exploring debt consolidation options. Effective debt management can relieve financial stress and free up funds for savings and investments.

Savings and Investment Strategies:

Financial planning emphasizes saving and investing wisely. It involves determining the appropriate savings rate and selecting investment vehicles that align with your risk tolerance and goals. This may include retirement accounts, stocks, bonds, real estate, and other assets.

Retirement Planning:

Planning for retirement is a critical aspect of financial planning. You need to determine the amount of money required for retirement. Use this retirement calculator to help you plan.

You should explore options such as Social Security or investments to acquire that money. It is important to create a savings plan that will enable you to save enough for retirement.

Estate Planning:

Preparing for the transfer of wealth to heirs or beneficiaries is essential for comprehensive financial planning. Estate planning means making a plan for your assets to be given out as you want and reducing estate taxes.

Setting clear goals, budgeting effectively, managing debt, saving, and investing wisely create more security. Planning paves the way for financial security, peace of mind, and the achievement of long-term financial aspirations.

Financial planning is important for everyone, whether you’re just starting out or getting ready to retire. It helps you build a secure and successful financial future.

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

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