3 Signs of a Successful Financial Plan
Posted by Ocean Wealth
When you put a financial plan in place — you hope for the best. You want to have money to do certain things in life. Whether that means splurging on a European vacation or saving for your child’s college fund, careful financial planning helps achieve these things. But how do we really know if our efforts are paying off?
Since financial planning is an ongoing process, it sometimes feels like we haven’t reached a particular goal unless we see it right in front of our eyes. Unfortunately, it’s not something as easily measurable as the cleanliness of a restaurant, for example. Great financial planning manifests itself in different ways and over a longer period.
Alas, we still want answers. We want to know if our financial plan is healthy and happy. That’s why we’ve put together a few key indicators that can help you determine the strength of your financial planning. With that in mind, here are three ways to know if your financial plan is working.
Your Budget Doesn’t Cause Anxiety
A successful financial plan is designed to quell your financial anxieties. Everyone’s personal meter for this is different. However, if you’re spending all day and night worried about your budget — there’s a solid chance it’s not working the way it should be.
Being comfortable within your budget is the sign of a successful financial plan. Now, this doesn’t constitute living in ignorant bliss, however. You still have to know how your wealth is working for you. If you’re finding that the money you have on a daily, weekly, or monthly basis is enough for you, then you’re likely on the right track.
You’re Not a Credit Card Addict
While there’s nothing wrong with using your credit card to make purchases, it becomes an issue if you aren’t paying it off regularly. If you’re running up your credit limit to the max and leaving it for future you to deal with — you might end up with a big problem on your hands.
Someone with a successful financial plan knows how much is owing on their credit card at all times. They also make an effort to pay it off as soon as possible and never go beyond what they can pay back. If you’re not careful, credit cards can lead to a slippery slope that you may not be able to recover from.
You’re On Top of Your Debt
Everybody has debt. Whether it’s from buying a new home or paying back a hefty student loan, it gets everyone at some point. Solid financial planning can go a long way in making your debts manageable. Taking the time to really dig into who and what you owe will make the burden seem less daunting.
Another great way of executing a financial plan to address debt specifically is speaking with a financial advisor. They’ll be able to give you an unbiased opinion of your debt situation and create the right financial plan based on what you’re able to pay within your budget.
We pride ourselves on our ability to help clients tackle debt among their other financial planning needs. Get in touch with our team of seasoned financial advisors today, and we’ll help you build the right financial plan for you.