Financial milestones are goals that you want to reach that are just as it says, specifically financial ones. As with any goal, it requires a plan of action. Milestone planning for your finances is a great way to set clear and concise goals and to create a plan to ensure that you reach those goals.
What are Financial Milestones?
What does it mean to plan for a financial milestone? Well, consider the things you will need money for in the future. You probably want to fund a college education for your children. You’ll very likely want to build a sufficient retirement fund. These are financial milestones that you want to reach, and they require saving and thoughtful planning.
Financial milestones can be other things as well. Maybe you want to buy a summer home or have the freedom to change careers. Milestone planning helps you realize these goals and create a plan that helps you succeed.
Negative Net Worth
Typically, people begin with a goal that helps them become debt-free. Paying off debt allows you the freedom to begin saving for your milestones. If you’re fresh out of college, you likely have student debt that needs to be repaid. Wherever you are in life, starting with debt repayment is most likely the best first step in milestone planning.
Buying a Home
If buying a home is a goal that you have set for the future, then you need to plan for that. Owning a home is a big dream for many people and is typically one of the biggest goals. It requires hard work though. Saving up a down payment, typically 20%, can take years. Plan for your future and start saving for your dream.
College is expensive and costs continue to grow every year. If you have children, and you want to fund their college education, you should begin planning for that as soon as possible. Start a college savings account and work with your financial advisor to create a savings plan that allows you to reach your goal.
Retirement is the day we all dream about but it can’t happen without planning, hard work and discipline. You need a retirement plan that considers all your goals and wishes. If your goal is to retire early, careful planning and a strategic approach will be critical Saving for retirement can be overwhelming but your financial advisor will help you plan for this financial milestone
What if you want a career change but can’t afford to switch? Start saving for that goal. Maybe you want to go back to school and make a complete career change. You may want to start your own business. Or maybe you want to have the financial freedom to work a part-time job and spend the rest of your time volunteering or focusing on a hobby. Whatever your reason, you must plan for it.
Setting Smart Financial Goals and Financial Milestone Planning
Whatever your goals are, you need a plan to reach them. Financial milestone planning is the perfect way to get started. Contact Argent Bridge Advisors today to learn more.