Don't Let Spooky Money Moves Haunt Your Future

As an investment advisor, I see the results of good-and poor-financial decisions being made on a daily basis. Most of the time, it all starts and ends with planning-just like a car maintenance program, or your own health program. Keeping fit and trim requires a sound nutrition and exercise program, along with good health insurance. Financial fitness requires a solid savings plan, a manageable spending plan and the ability to adapt and adjust your financial goals as your lifestyle changes.

1. Start a financial plan. Some of you will want to create your own financial plan and others will want to seek the help of an advisor. If you feel as if you can realistically develop a comprehensive plan that incorporates your assets, liabilities, income, insurance, and taxes into something that aligns with your goals, values and relationships, then consider doing it yourself. If, you find that you are overwhelmed by the idea, or you have little time or desire to do-it-yourself, it might be time for a professional.

2. Save. Save. Save! This is the cornerstone of a good financial plan. This is an excellent habit to develop early in life. Then, you'll be less likely to face serious financial crises as you get older. Your savings will enable you to deal with some of life's little surprises with less stress-such as unexpected car and home maintenance and medical bills. The more savings you accumulate, the more you'll be able to buy enough assets to be well diversified. You may find that your good habits enable you to fully fund your child's education and maybe even your own charitable foundation!

3. Follow the plan. Now that you've developed a plan that makes sense and is simple (not easy) to follow, be sure to stick with it. You don't need to be perfect, but you do need to be consistent, and you need to stay focused on your short and long-term objectives.

4. Adjust the plan, when needed. If you have any major life changes, such as marriage, the birth of a child, divorce, the sale of a business, major asset, or an inheritance, you'll need to account for those changes in your plan. You'll also need to make adjustments whenever laws and tax codes change.

5. Connect the plan to your values. Align your finances (and time and energy) to work in concert with your values. For example, if you want a comfortable retirement, but you have a tendency to spend money on expensive toys, vacations and other non-essentials, you'll create more and more stress for yourself until you focus on your first priority-which is retirement. Once you have a plan in place to save adequate funds, then you can concentrate on your next priority. When you have a significant amount of assets, you may be able to fund several goals at once, but you still need to keep your finances and values in focus to achieve optimal results.

6. No obsessing! If you've worked hard to establish a plan and put the plan into action, then let it work for you. Try not to over think it. Presumably, you'll revisit your plan on an annual basis-at a minimum-and whenever major life changes occur.

A financial plan typically requires an in-depth analysis of your short and long-term financial goals, and it serves as road map to your financial future. Your values, relationships, financial obligations and other professional advisors play key roles in the plan. But YOU are the star of the show. If you've never had an opportunity to do a comprehensive financial plan, you might consider meeting with an advisor before the end of the year. Then, you can leave your financial ghosts in the past, and move on to more important things like enjoying your life to the fullest!

Don't forget: On Sunday, October 23rd, Studio 904 and Soundmark Wealth Management are hosting the third, and final, Wealth Workshop for 2011. The topic is: Your Psychology and Money, presented by Patti Davis and Debbie Walter. Call 206-232-3393 to reserve your spot!