Simple Steps to Financial Confidence

Written by Andrew Fiega
ChFC, CLTC, LPL Financial Advisor, Fiega Consulting

In the financial planning world, the phrase “financial confidence” is often thrown around. But what does it mean? To me, a financial advisor, financial confidence isn’t about how much money a client has saved or invested; it’s about how much knowledge they have about their overall financial situation and current and future goals.

UNDERSTANDING YOUR CURRENT FINANCIAL PICTURE

Mastering the state of your current finances is often the most overwhelming part of the financial planning process. It includes pinning down your monthly budget and comparing it to what is being spent. The deeper you look into your spending, the better you’ll understand what you must do to meet your goals.

IDENTIFYING YOUR GOALS

One of the first questions I ask my clients – both individuals and couples – is, “What is important to you?” The answer determines both short-term and long-term financial planning. If the answer is, “traveling the world,” we would look at that client’s current financial situation and realistically decide if they are booking a trip next month or in five years. Determining what is important gives purpose. It also can reign in unnecessary spending, helping you manage your goals.

WORKING WITH A FINANCIAL PROFESSIONAL

There are financial institutions and advisors on almost every street corner, with different experiences, abilities, and service levels. There is no one-fit solution for everyone. You should find a good financial professional you feel comfortable with, someone who studies your entire financial situation and presents a plan with different options. Once you agree upon the plan, consistent monitoring is required to make sure you do not veer off-course. I believe financial confidence is only achieved when a plan is developed, monitored, and – as things change – revised.

This article was originally published in Kit magazine, July/August 2019

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.