Financial woes can leave you so stressed out you don’t have the mental bandwidth for anything else. When that stress becomes a constant in your life, that can mean you no longer derive enjoyment out of your life at all, and then you’re only living to pay bills and die. No one wants to live that way, and that’s why forming a financial plan to take charge of your financial situation and budgeting properly are so critical.
Financial planning can empower you to reach your goals. Those with a financial plan are twice as likely to make progress toward their financial goals than those who have no plans. Two thirds of Americans are not confident in their financial situations, and two in five have never had a budget.
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62% of people who have a financial plan say they feel in control of their lives. This can prevent you from going further into debt from overspending on your credit card or line of credit, and it can help you to save money for those emergencies that can easily derail everything.
Americans’ biggest financial goals this year are:
- 36% save more money
- 23% pay off debt
- 18% stick to a budget
- 15% increase income
How to improve your financial situation
It’s also worth noting that long-term goals fall under the financial goal category. Many people want to be able to save enough to retire comfortably, but 75% aren’t sure how much they should be saving and 40% don’t know how their investments are allocated. Many parents also plan to cover a significant portion of their child’s college education, but they just aren’t saving enough to make it happen. While 97% of parents plan to pay at least some portion of college and 70% plan to cover 70% or more, only 29% are on track to meet that goal.
But it’s not just covering your financial obligations that financial planning can help you with. Taking control of your life and figuring out what is important to you and how to make it work also comes with a certain level of financial stability.
Time is more valuable than money. Figure out:
- How you want to spend your time
- What kind of career you REALLY want
- What educational opportunities would interest you
- If there’s anyone you’d like to spend more time with
When you are in control of your financial situation, you can start to take back some of your time. Learn more about financial planning from the infographic below!