Last week we discussed when you should get a financial plan [part 1]. The short answer to that is right now. But today we're going to discuss why you should get a financial plan at different stages in your life.
So you know from reading last week's blog post that the best time to get started on a financial plan is now, but there are also lots of times big (or small!) life changes could be an awesome time to build your plan, or update the one you currently have. Of course, all of our lives will look different and some of these moments may or may not apply to your individual situation, but we wanted to take the opportunity to let you know times in your life you should definitely be thinking about financial planning! Remember, starting a financial plan can help you to set realistic goals for yourself, and figure out the right plan for you to achieve them without the stress. Keep reading below to find out!
Graduating from school 🎓:
Graduating from school is a major moment in life that comes with a lot of changes and questions about the future. A huge aspect of that is personal finance and financial responsibility (think: student loans, entering the workforce, bills, etc). Creating a financial plan as you near the end of school or after you graduate is one of the best things you can do to manage your transition out of school into the next phase of your life.
Starting a new job 💰:
Starting a new job can be an exciting time in your life, it's also the perfect time to assess your personal finances and financial goals, and start planning for your future. Important note, make sure you understand any RRSP contributions that you can get matched through your employer. Employer matching is an important part of your financial plan, and one you should strongly consider taking advantage of. A financial plan can help you maximize your newfound income and effectively allocate it toward whatever your financial goals may be.
Buying a home 🏠:
Preparing to buy a house can be both a thrilling, yet daunting time in your life. From credit scores, to down payments and mortgages, there is a lot going on. Having a financial plan can also help you learn about hidden costs of home ownership, like putting money away for maintenance and upkeep. A financial plan can help ease the stress for one of life's biggest purchases and make sure you are ready to be a homeowner.
Before buying a car 🚘:
Buying a car is another big purchase you may make in your lifetime. It is important and helpful to use a financial plan to access what your budget is and how you can purchase your vehicle. There are many ways to buy a vehicle. Whether it's through financing, leasing, or buying, a financial plan will help you decide which method is best for you while allowing you to meet your other financial goals.
Before major purchases or expenses 💸:
Similar to buying a car, it can be really helpful to have a financial plan in place as you think about any kind of major expenses or purchases (think: a dream vacation, a new business venture, home renovations, the list goes on!).
Getting married 💍:
Marriage introduces changes in a new couple's financial situation that can affect all aspects of their life together, including new ways of managing their personal finances. Creating a financial plan can help you to build a strong financial foundation for your relationship, setting you up for your future money and financial success.
Getting a divorce 💭:
Divorce can be a challenging time for everyone, and it can be a particularly vulnerable time for the parties involved. If you are facing the prospect of divorce or currently going through one, having a financial plan is critical. You should know that there are financial planners who specialize in divorce, and if you have the means, we strongly encourage you to engage one. You can find one in your area here. Because the outcomes of the divorce will have financial ramifications that last years, a third party can be impartial.
Planning for children 🍼:
If you are planning to have children at some point in your life, making a financial plan can help make sure you and your family are financially comfortable. Planning for children can come with unexpected expenses, childcare and healthcare costs, future tuitions, etc. Having a financial plan in place can help you feel prepared and more secure when those inevitable expenses come up!
Going back to school/tuition for yourself 📚:
Depending on what stage you are in your life, whether you are continuing your education immediately after graduating post-secondary or later in life, a financial plan can help make sure you can properly allocate your money toward tuition and other school expenses. A financial plan can help manage any student loans or grants that you may receive to help with your education and repayment later on.
Whether you are thinking about your retirement or are currently retired, having a financial plan will help to ease the transition and ensure that you feel financially secure in your retirement. Retirement looks different for everyone, whether it's travelling, moving, starting personal projects, etc., you'll want to make sure that you're financially set-up for whatever retirement looks like for you.
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At Untangle Money we help women understand their (real!) financial picture, and obtain financial guidance from people that actually, really, get it. We would love to help you too. Join the community of hundreds of other women looking to strengthen their financial well-being. Check out our products and plans here!