Menu #45: The importance of financial planning

STATS STACK 🥞

$20 million is how much Mike Tyson earned from his fight with Jake Paul, while Paul is estimated to have made $40 million. The match drew an audience of 65 million viewers on Netflix. (Source: Forbes)

37% of those ages 18 to 29 say they regularly get news from influencers, but there are minimal differences between Republicans and Democrats on this question.  (Source: Pew Research)

98% employment makes North Dakota the hardest-working state, with the highest employment rate in the nation and an average workweek of 39.7 hours, the third highest in the country. Do you agree with your state’s score?! (Source: Wallethub)

DEEP DISH 🍕

The importance of financial planning

Financial planning is more than crunching numbers or making a budget—it’s about creating the life you envision and equipping yourself for the journey ahead. It’s an investment in your future self, and if done thoughtfully, it can transform the way you live today and 10 years from now.

Why financial planning matters

Imagine trying to drive to a place you’ve never been before without a map or GPS. You might eventually find your way, but not without wrong turns, unnecessary detours, and frustration. Financial planning is that map. It doesn’t just help you avoid obstacles; it ensures you’re making the most efficient use of your time, energy, and resources.

The beauty of having a plan is that it removes guesswork from your financial decisions. It helps you make intentional choices rather than reactive ones. When you know where you’re headed, it’s easier to prioritize what matters most—whether that’s saving for a home, starting your own business, or building a safety net for your family.

Finding control and confidence

Money can feel overwhelming, especially when you don’t have a clear sense of where it’s going — this was me when I first started out. Once I sat down to map out my finances, the picture became clearer. I could see exactly what I was working with, how I could achieve my financial goals, and where I needed to adjust.

Having control over your finances isn’t just practical—it’s liberating. It replaces financial anxiety with a sense of empowerment. You’re no longer crossing your fingers and hoping everything works out. Instead, you’re making informed choices and moving through life with a sense of purpose. Confidence in your financial decisions seeps into other areas of your life too—it’s the kind of energy that fuels ambition and creativity.

Turning dreams into achievements

Every big dream starts with a plan. Whether it’s saving for your first home, building a retirement nest egg, or traveling the world, these goals might feel daunting at first. But when you break them down into smaller, manageable steps, they become achievable.

Here’s what I’ve learned: the more specific your goals, the more likely you are to achieve them. It’s one thing to say, “I want to pay off my student loans.” It’s another to say, “I want to pay off $30,000 of student loans within the next two years, which means contributing $1,400 each month to student loan payments.” That level of clarity keeps you focused and motivated.

When I paid off my student loans, it felt monumental—not just because of the financial freedom it gave me, but because it proved I could tackle big goals with determination and planning. Each milestone you hit builds momentum and reinforces that you’re capable of achieving the life you want.

Navigating life’s curveballs

Life doesn’t always go as planned. Cars break down, medical emergencies happen, and jobs can disappear overnight. Without a plan, these unexpected events can feel like major setbacks. With one, they become manageable bumps in the road.

Take an emergency fund, for example. It’s not glamorous, but it’s one of the most powerful tools you can have. Insurance is another crucial piece of the puzzle. While no one likes to think about worst-case scenarios, preparing for them can make all the difference. Health insurance, disability coverage, and life insurance ensure that you and your loved ones are protected, no matter what life throws your way.

Building wealth with intention

Building wealth isn’t just about having money—it’s about creating opportunities and freedom. It’s the difference between living paycheck to paycheck and having the resources to say “yes” to the things that matter most.

One of the most important lessons I’ve learned is the power of starting early. Even small amounts saved or invested consistently can grow exponentially over time thanks to compound interest. For example, saving $300 a month starting at age 30 could grow to over $1,000,000 by retirement. The earlier you start, the more time your money has to work for you.

Investing is another key component of wealth-building. While it might seem intimidating at first, it’s all about understanding your risk tolerance and aligning your investments with your goals.

Where to begin

Getting started with financial planning can feel overwhelming, but the key is to take it one step at a time. Here’s how you can begin:

• Reflect on Your Current Situation: Take a close look at your income, expenses, debts, and savings. This is your financial baseline, and understanding it is the first step toward improvement.

• Dream Big, Plan Realistically: Think about what you want your life to look like in five, ten, or even twenty years. Write down your goals and break them into smaller, actionable steps.

• Create a Flexible Budget: Your budget isn’t meant to be restrictive; it’s a tool to help you prioritize what matters. Track your spending, adjust where needed, and remember to leave room for the occasional splurge.

• Build a Financial Safety Net: Start by setting aside six months’ worth of living expenses in an emergency fund. This cushion will provide peace of mind and help you handle unexpected challenges with confidence.

• Start Saving and Investing Early: Begin with small, consistent contributions to savings or retirement accounts.

• Adapt as You Grow: Life will throw curveballs, and your financial plan should evolve with you. Revisit it regularly to ensure it aligns with your goals and priorities.

Financial planning isn’t about being perfect—it’s about being proactive. It’s about making small, intentional choices that add up over time, bringing you closer to the life you want.

So take that first step, no matter where you’re starting from. Whether you’re paying off debt, saving for a dream, or preparing for the unexpected, each action you take is a step toward freedom and security.

SWEET LINKS 🍰
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