Are you in a quarter life crisis? Believe it or not you are not alone. Many people start wondering where life is headed after graduation because you’re done with school and now what? I have been in your shoes and I know many others have as well. You have your dream job and you may even have a beautiful young family started. You start to think you have no idea where you are heading. Creating a financial plan to help guide you may be exactly what you need.
Reason 1: We all have dreams we want to achieve
You may be thinking, "what does having a financial plan fix other than telling me what I need for retirement?" Well a good financial advisor will tell you that a great financial plan is more than just for retirement. A sound financial plan will help you guide your life in the direction that helps you achieve your dreams from buying your first house to funding your children’s education to that dream condo in the mountains or oceanfront property and yes eventually your retirement. By outlining your goals and setting clear expectations for the years to come, your family strategically approaches the coming years that will affect your financial well-being.
Reason 2: Investing vs. Student Debt
A financial plan will keep you on track to make sure that the dreams you have now will be achievable throughout your life without stacking up insane amounts of debt and while still paying off your student debt. You may think that your thousands of dollars of student debt will be holding you back from saving and investing but with a good financial plan you will be able to pay that off and invest money at the same time.
Reason 3: Your life affects others
One of the hardest things to talk about is death but it is also one of the most important. There are so many pieces that go into estate planning and yes even a single person in their 20s should have some sort of will and plan to fall back on. The last thing anybody wants is leaving their family to deal with the judicial system while grieving for your loss. By creating a basic Will, you are taking initiative in helping those that care for you make sure they can grieve properly without the courts getting involved. Also having a digital estate plan saying who has the right to access your online accounts in case nobody knows your passwords is becoming more important.
Reason 4: Time Goes Faster Each Day
Eventually I believe most people want to retire and just live life surrounded by their hobbies and enjoy time with their friends, children and grandchildren. Life goes by so fast that forty to fifty years from now if you don’t have a plan guiding you in your savings and creating that pile of cash to live on you may never have the retirement you dream of. A financial plan is necessary for retirement as the plan will make sure that over all that time you have a guide telling you to save and put money away so that you can have a happy retirement. You may not want a luxurious retirement but you will still need something in the end.
I'm not saying you need the help of a financial advisor; this can be done on your own time. But what I do know is that when you have someone keeping you accountable your success significantly increases. So even if it’s not a financial advisor having someone outside of yourself and your significant other keeping you accountable will be the key to success.
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Steven LaFleur attended college at the University of Nebraska-Lincoln where he majored in finance. After college, he worked in his family’s business. After three years Steven decided it was time to pursue his passion; helping and educating younger generations on money, planning, and finances. Steven is now a financial advisor at True Measure Wealth Management in Omaha, NE. Steven and his wife Kelly have two daughters who keep them busy at all times of the day. Steven enjoys skiing in the mountains and also biking and golfing during the non-snowy months. As a junior advisor, he’s passionate about helping the younger generations plan for their future. For more of Steven’s insights subscribe below.