If you’re like most people, you’re setting goals and looking ahead with optimism at what 2023 may bring. It is easier to see how you can be successful with your financial plan when the markets are zooming upward as they did in 2021, but it’s years like 2022 and potentially 2023 that teach the real-life lessons of finance.
Many economists and financial pundits are predicting that 2023 will bring with it higher inflation and interest rates, as well as a potential recession. What does that mean for your financial plan? Is it built to handle the curveballs the markets and the economy inevitably throw?
When we design financial plans for our clients, we create a scenario of success – one that addresses their specific goals and resources and incorporates their resources and timelines. And then we shred that scenario with multiple risks in multiple ways to prepare ourselves and our clients for how we will handle surprises when they arise. Just like a broken bone heals stronger than it was before, so too does a financial plan – and your confidence in it! – shore up more firmly when it’s been pressure tested against possible fissures and cracks.
Below is a simple three-step framework to follow as you’re building and strengthening your financial plan for the new year:
Ready. This step is literally about getting ready. First, get mentally ready by identifying that you have work to do on your financial plan that you haven’t yet taken steps to address. Then, fully commit to your plan. Instead of, “I am going to work on our financial plan,” think, “I have a successful financial plan.” Commit to that vision, then move to the next phase.
Set. If you’re like any of the BFS Advisory Group team members, you love to plan. But our clients come to us because they don’t know how to plan for their finances. This is where we help our clients to accelerate their success: By taking the time to identify the gaps in their plans and prioritize the next steps. We work with our clients to set their vision and their performance metrics in alignment with their resources, and then analyze their plans against potential financial challenges. Once you’re set, you can go.
Go. Here’s the hardest part – taking the steps to put your plan in place. Goals without actions, after all, are just dreams, and dreams won’t get you to the financial future you want. We often find that our clients come to us when they just can’t take the “Go” step on their own, either because they’re not sure what to do or because they’re afraid of making the wrong move.
The truth is, “Go” is always easier when you have a professional helping to guide the steps you take on your financial journey. If you’re looking ahead to 2023 with apprehension and uncertainty rather than excitement about getting closer to your financial goals, maybe it’s time to give our team a call. We’ll work together to make sure your financial plan is built to handle any surprises 2023 and the years to come have in store.
Ready, set, go: Click here to get in touch!