The concept of planning anything at a personal financial level is generally not treated with the importance the subject deserves. In other words, families do some calendaring, worry about the monthly budget, and occasionally think and worry about their financial future. The purpose of this blog is to point out that having a Financial Master Plan is very important, and having a Financial Master Plan is really quite easy.
By definition, a Financial Master Plan is an organized set of decisions made by one person or a team (i.e. spouses, partners) about how to accomplish something in the future.
Such a master plan has four basic elements:
- Spending Plan wherein yearly income and expenses are broken down into average monthly expenses.
- Debt Plan wherein all bad debt is eliminated very quickly.
- Tax Plan wherein all the various FICA, Medicare, federal, state and other taxes are minimized.
- Retirement Plan wherein saving is maximized for retirement.
Of course you already know of these four elements. You know about spending and having more month than money, you know about debt and how hard it is to eliminate it. Certainly you know about taxes and probably have some very negative feelings about the burden taxes play on your income. And retirement? You are already worrying about it but without much of an idea about what to do to get ready for it.
Here is what you need to know about these four elements. To know about them and how to implement them so they all work together at the same time is fundamental to your success, and more than that it’s rewarding! Knowing how to make a spending plan, debt plan, retirement plan, and tax plan work together at the same time is worth a lot of money to you now and in the future! It is important to fully know that when you spend or consume money you are affecting retirement. As debt goes so goes spending. As taxes go so goes debt, spending and retirement, and so on.
This is all so because we have limited income. We will always have more opportunity to spend money than we will have money to spend. Get used to it! Solve it by creating a Financial Master Plan whereby you optimize the use of the dollars you have available. The rewards are fantastic! Have more money each month, get out of ALL debt (mortgage included) n 8 to 10 years, pay less in taxes, and double, even triple your retirement savings.
For more information on how to build your Financial Master Plan call Alan 801-292-1099 alan@moneymastery.com.
