For many, the turn of the new year is a time to self-reflect and make resolutions. There’s no better time to assess your financial goals for the new year and beyond by following proper financial goal-setting practices. Setting short-term, midterm, and long-term financial goals is important to becoming financially secure. If you aren’t working toward anything specific, you will likely spend more than you should.
Even those who are most cautious can’t prepare for every crisis. Thinking ahead allows you to work through things that could happen and do your best to prepare for them. This should be an ongoing process so you can shape your life and goals to fit the changes that will inevitably come. There’s no better time than the turn of the new year to review your financial goals and overall financial situation.
Revisiting your financial strategy annually gives you an opportunity to reset and update your strategies so that they’re realistic and factor in new goals or risks that may have come up. If you’ve never set goals before, take the opportunity to formulate them so you can put yourself in a solid position. Knowing your net worth, your cash flow, and considering your priorities are all crucial pieces to your financial goals.
To calculate net worth, you’ll need to know the value of your assets, such as savings, money invested through your investment accounts or through 401(k)s, a car, or anything else you own. Then, you’ll take the total amount and subtract your total liabilities, such as mortgage, car, student loans, and/or credit card debt.
You’ll need to know your income and expenses to calculate cash flow. Documenting cash flow can help you pinpoint areas where you can cut back spending and use your money according to your goals. But you can’t do that until you have your priorities set. The core of a financial strategy is a person’s clearly defined goals. These may include funding a college education for the children, buying a larger home, starting a business, retiring on time, or leaving a legacy.
The main elements for a full, comprehensive financial strategy include a retirement strategy, a risk management strategy, a long-term investment strategy, a tax reduction strategy, and an estate strategy. These strategies should be expertly constructed and informed by your unique financial situation.
No one can tell you what goals you should have and how to prioritize them. However, a financial professional may be able to help you choose a detailed savings plan and specific investments that will help you achieve these goals over time. Contact us at (540) 720-5656 to get started today.
Source: https://www.investopedia.com/terms/f/financial_plan.asp
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.