A survey conducted last year found that money remains the top source of stress for Americans, regardless of income. Understandably, a combination of recent events such as high inflation, supply chain issues, and geo-political uncertainty have aggravated this feeling. One effective way to react to stressors, is to focus on the elements that are in our control and create a plan of action for them. While we cannot control inflation and global uncertainty, we can manage the ways in which we spend and save.
Another thing we cannot control is the resulting volatility in the financial markets. However, what we can control is building a diversified investment portfolio aligned with our goals that is designed to reduce the impact of market swings. Having a financial plan is a great tool that can give us perspective on the things we can do, what we can control, and the impact these actions may have on the probability of achieving our goals.
It is never too late or too early to begin thinking about financial planning. Financial planning is about being prepared. Assessing where you are today and where you want to be is part of a process that is in your control. Doing so will provide you with a blueprint you can go back to and adjust whenever the need arises. Having a plan in place gives you knowledge, and as the saying goes, “knowledge is power!”