With the start of a new year, now is a great time to evaluate your financial health and get back on the path to achieving financial security. Financial planning is essential for protecting your family, providing for their future, and reaching your own personal goals. It’s also important to understand how market volatility and inflation can impact your financial future. In this article, we’ll discuss why financial planning is so important and how to use the TLC approach to maximize savings potential.
With so many consistent changes in the market due to inflation and volatility, it’s not surprising that 56 percent of respondents in a recent Consumer Sentiment Tracker study by Lincoln Financial Group place protection from risk as a top priority. People indicated the greatest concern for their family (39%) followed by their income (26%), which speaks to the level of care individuals have for those closest to them. Taking steps towards preparing for an uncertain future is definitely cause for alarm, but it also provides an opportunity to ensure personal and financial security.
David Berkowitz, president of Lincoln Financial Network, said that their research showed how important it is to have financial solutions that can help people through different markets. People are worried about not having enough money to pay for things, as well as retirement and unexpected events. A good financial plan will help people be prepared for these risks.
The Importance of Financial Planning
Financial planning helps you make decisions about how to protect yourself, your family, and those that depend on you financially—no matter what life throws at you. According to Lincoln Financial Group’s Consumer Sentiment Tracker Study, protecting one’s family is taking precedence over other financial goals like retirement savings or building wealth. It’s also important to consider the current market environment when evaluating your finances—market volatility and inflation can have an effect on long-term savings plans if not managed correctly.
Risk Protection and Family First
When it comes to financial planning it’s essential to put risk protection first. That means having an emergency fund with at least 6 months of living expenses saved up in case of job loss or unexpected medical bills. This way you can rest assured that you have enough money saved up if something were to happen so that you won’t be left scrambling trying to make ends meet while dealing with a crisis situation. The next step is determining what type of investments are right for you based on your lifestyle needs and risk tolerance levels.
TLC Approach to Financial Planning
Lincoln Financial Group suggests using its “TLC” approach when it comes to financial planning: Talk about it, Learn more, Commit action steps towards success.
- Talk: Start by talking about it with a professional advisor who can help identify any weaknesses in your current strategy as well as provide advice on how best to manage your funds for maximum returns in accordance with your risk profile.
- Learn: Then learn more about tax-deferred investment strategies like 401(k) plans or IRAs that can help maximize savings potential over time while taking advantage of employer matching programs available through workplace benefits packages or other opportunities available for growth such as starting a business or investing in real estate.
- Commit: Lastly, commit yourself to take action steps towards achieving these goals by setting realistic deadlines for yourself and tracking progress along the way so that nothing falls through the cracks when it comes time to invest or save money!
Take Control of Your Finances in 2023
Re-evaluate your current saving and spending habits this year and make sure they align with what will help you achieve a financially secure future in the long run. Make a plan that outlines realistic goals while taking into consideration any changes due to market volatility or inflation over time—this will keep you on track towards living out the life you envision for yourself without sacrificing quality of life today! With some dedication now, there’s no telling what kind of success tomorrow may bring!
Local news matters and MyChesCo brings you the latest stories happening in Chester County, Pennsylvania. Stay up-to-date on all the latest news, weather, traffic, events and more by signing up for our free newsletter and following us on social media. Thanks for reading!
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.
This article is intended for informational, entertainment or educational purposes only and should not be construed as advice, guidance or counsel. It is provided without warranty of any kind.