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[Video] What Happens If You Jump Ahead Of The Plan?

[Video] What Happens If You Jump Ahead Of The Plan?

MICHELLE SMALENBERGER, CFP ®

As you’re planning financially, do you think that it matters if you jump ahead and maybe do one step before the other?

Well sometimes it doesn’t matter. And sometimes it does matter. I’m going to talk through a three bucket system, where you can actually say, “Here’s where I’m at in this step and where I’m going next”.

Here are the three buckets of building a plan:

  1. Structure: Setting up the plan
  2. Action: Following through on the structure that we’ve set up
  3. Feeling: When you accomplish these things, there’s a feeling and sense of accomplishment

Structure Phase

Structure could be one part of planning for your finances that maybe just aren’t as much fun. Taking a look at all areas of your finances– estate planning, tax, insurance investments, cash flow.

You’re going to do different things at different times with all these. In the structure phase, this is really just checking if things are in place.

Ask yourself, “Do I have insurance? Do I have the things I’m going to need for the next several years?”

The list above is a structure to your future. Do you have a structure that’s going to stay in place? If you’ve been attentive over the years, you might be able to check off a lot of boxes at this point. This would be the time to consider what changes might need to be made 10 or 15 years out.

For example, once you have estate planning documents, barring a lot of major changes, these would be applicable for many years. You might have to make some changes down the road, but once the structures in place, it is easy to make updates.

And really, these items on the list should be set in place first before you are able to start investing, saving money, and seeing how the stock market is affecting that and growing.

This is why I say, “this is one part where it may not be exciting”. You may not really want to get up and do it. But it’s so important because now when you move to the building phase, this is where now we’re able to say I’ve got these things in order.

Building Phase

So now in this building phase. This is where you are add funds to different accounts with purpose. Now the “when and how much” is a part of the plan. It is a part of your blueprint that you’ve put in place. And this is when we start to see action.

In the video we show how money grows interest over time and multiplies. There is a purpose behind stocking money away each month – this is the building phase.

Accomplish Phase

As we see in the chart, when you accomplish the saving away each month and being purposeful with your finances, you get a sense of accomplishment and peace.

When you follow the structure, put that plan into action and stuck to it, then you know you’ve done it well.

We highly recommend following these steps in order. There can be missed financial areas that could harm the end result if done out of order. But, you can start today and decide to follow a plan. The plan will give you peace knowing that your structure is in place.

That way if something unfortunate happens here at the beginning, before you really start building, you have already protected the future plan that you want to achieve. And so by doing these things first you are actually able to create a plan that can take care of you and your family all along the way.

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