The Importance Of A Financial Plan

Posted By Kim Spencer, CFP®, CDFA® on May 11, 2020


By Kim Spencer, CFP®, CDFA®

When the unexpected happens, chaos can result. And right now, chaos and change seem to be a part of daily life for all of us due to the ever-evolving coronavirus pandemic. More than ever, preparation and having a plan of action in place is necessary for you to do what’s best for you and your family in the midst of this or any other crisis.

And when I say to plan and prepare, I’m talking specifically about a financial plan. Having a financial plan means having all the details of your financial life in one place, including your savings, debt, assets and investments, life insurance, and other elements that apply to your unique financial situation (1) so that when a crisis hits, rather than resorting to panic or stress, you can rely on a thorough plan of action for handling your finances. Here are some of the many ways a financial plan can make a difference in your life. 

Be Ready When Chaos Comes

Let’s start with the elephant in the room, or more accurately, the potential virus in the room. This is not the first time (and it won’t be the last) there has been a threat to your health, lifestyle, or money. Since we know this reality, being prepared for when, not if, these circumstances arise is key for creating stability and security, no matter what comes your way.

When there is a comprehensive plan in place, panic is reduced and rash, emotional decisions can be avoided. Financial plans set people up for success no matter what life or the economy throws your way. Everyone deserves to have that chance. 

Pursue Your Goals

Did you know you are 42% more likely to achieve your goals if you write them down? (2) Having a financial plan is not just about managing your money, it’s about making sure the time spent to earn your money is used to reach the dreams you have for you and your family, giving you a life full of satisfaction and contentment. 

What do you want for your life now and in the future? What about your loved ones? Whether it’s vacations, having more time at home, putting your kids through college, retiring with dignity, or some other dream, chances are it involves having enough money to feel financially secure and knowing where and how to allocate that money. 

Creating a financial plan now will get you one step closer to making the future you desire a reality.

Secure Your Future

A financial plan covers everything from basic to complex financial matters with the goal of securing your future. It can help you:

  • Know your current situation by creating a budget.
  • Have emergency savings for when unexpected expenses arise or to weather a potential job loss.
  • Add up how much debt you have and calculate how much of your monthly income is going toward minimum payments. Create a plan of action for paying down those debts.
  • Determine the household income you need to earn in order to reach your goals.
  • Understand how much you need to invest per month for retirement, which is something a trusted financial advisor can help you determine.

Are You Ready To Create A Financial Plan?

If you don’t already have a financial plan in place, now is the time to create one. And as you’re likely spending a lot more time at home lately, it’s a great opportunity to tackle this task. We know this can feel daunting, but remember that our team at The Nalls Sherbakoff Group is here to guide you. We can assess your current financial situation, help you make the necessary changes, or affirm that your investments are exactly where they should be. Don’t hesitate to call (865) 691-0898 or contact us online to schedule a complimentary consultation. 

About Kim

Kim Spencer is a financial planner at The Nalls Sherbakoff Group, LLC with over 30 years of industry experience. Kim is passionate about equipping and empowering women to take control of their finances and specializes in walking women through transitions, including divorce and death of a spouse. Kim holds both the CERTIFIED FINANCIAL PLANNER™ (CFP®) and Certified Divorce Financial Analyst (CDFA®) designations. She leads an ongoing series of Women’s Circles where small groups of women get together to discuss topics such as retirement, estate planning, and investing so they can grow in financial literacy and make the best decisions for their lives. Kim also teaches local workshops on financial planning for divorce. When she’s not working, Kim loves to give back to her community. She currently serves as an advocate in the juvenile court system through CASA of the Tennessee Heartland. She works with the Homeless Task Force in Blount County and is a past board member/president with the East Tennessee Financial Planning Association. She loves nothing more than spending time with her family, which includes 3 sons, 2 daughters-in-law, and three precious grandchildren. To learn more about Kim, connect with her on LinkedIn. 

You can also connect with her on her Women and Money Facebook page. 

DISCLOSURES: The information provided is for general informational purposes only and should not be considered an individualized recommendation of any particular security, strategy or investment product, and should not be construed as investment, legal, or tax advice. The Nalls Sherbakoff Group, LLC makes no warranties with regard to the information or results obtained by third parties and its use and disclaim any liability arising out of, or reliance on the information. These indexes reflect investments for a limited period of time and do not reflect performance in different economic or market cycles and are not intended to reflect the actual outcomes of any client of The Nalls Sherbakoff Group, LLC. Past performance does not guarantee future results.

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(1) https://www.nerdwallet.com/blog/investing/what-is-a-financial-plan-how-can-i-make-one/

(2) https://www.cnbc.com/2019/09/13/self-made-millionaire-how-to-increase-your-odds-of-success-by-42-percent-marie-forleo.html