Harris: October is National Financial Planning Month

By Charlestien Harris

Last week, I discussed October as Financial Exploitation Month to raise awareness about the importance of being cautious with your financial transactions and personal information. This week, I want to talk about how essential it is to have a financial plan – not just for the holiday season, but beyond – because your finances will be a concern for as long as you live! As the holidays approach, many of you start thinking about your finances over the next few months and how to budget for celebrating the most wonderful time of the year. 

Let me give you some reasons why taking a long, hard look at your finances now is crucial for the stability of your financial future.

1. Financial planning helps you determine your short- and long-term financial goals and create a balanced plan to meet them. Setting goals is the most important first step because it forces you to think about what you want financially and helps you create a plan to achieve those goals for yourself and your family. A financial plan captures your vision for the future and outlines, in great detail, the steps you and your family can take to pursue the goals you’ve set.
2. A written financial plan can jumpstart your finances and savings, even with a small amount of money. One of the most common reasons people give for not having a plan is, “I don’t have enough money.” This is a misconception. Contrary to what you might think, financial planning doesn’t require large sums of money to get started. I often tell my clients to start by saving their spare change or breaking a small habit and saving that money – little by little, it adds up! A written plan helps you prioritize your goals and, as mentioned earlier, provides a way to measure success.
3. A plan helps you stay “in tune” with your financial reality. When you know the numbers in your financial plan, you’re no longer relying on guesswork or simply hoping everything will work out. By understanding where you stand, you can make informed decisions and smarter choices about how to move forward. A plan puts the power in your hands by showing you what you need to do with your finances. Taking control often means gaining peace of mind, knowing that you have a step-by-step process designed to achieve financial success.
4. Developing a plan helps you prepare for emergencies. Just like in cooking, where some preparation is necessary before you make the dish, it’s similar with your finances. A good financial plan always accounts for life’s unexpected expenses. Even if your plan doesn’t predict specific emergencies, just having one in place can help you feel more prepared.
5. A little financial planning now can lead to a much happier retirement later. It can be stressful not knowing how much you’ll need for retirement or how long your savings will last. Here’s a question: Do you know someone who is retired and afraid to spend their money, sitting at home because of that fear? By knowing where you stand now, your future could look a lot brighter. Know your numbers! Retirement is meant to be a reward for your years of hard work, and it’s important to have a plan in place that allows you to enjoy that reward.

Go beyond the budget! I spend a lot of time writing about the importance of maintaining a budget, and while it is important, you should also take the next step toward creating a financial plan. Having both a budget and a financial plan will help you even more, but it’s crucial to understand the difference: a budget sets goals for months, while a financial plan sets goals for years. A budget is essential for everyday money management, but a good financial plan considers long-term needs like care, insurance, taxes, estate planning, and college. A financial plan matches your goals against your resources and shows you how to align them for success!

For more information on this and other financial topics, email me at Charlestien.Harris@banksouthern.com or call me at 662-624-5776. 

Until next week – stay financially fit!

Charlestien Harris is our financial contributor, a financial expert with Southern Bancorp Community Partners whose articles are seen in a number of publications around the region.