Studies say that a person averages around 35,000 decisions per day. Per day. Many of those decisions end up affecting many more to come. In order to experience satisfaction and comfort, or to avoid chaos and regret, decisions should be thought out, organized, and planned. Growing up, I was always told that there are consequences to every action. Some are good and others bad. But always try to think through the consequences before making the decision.
How do our financial decisions affect one another? There are two critical decision-making periods in one’s financial lifetimes. The decisions that you make during these periods can quite literally dictate the thirty years that follow. The first is as a young person. Establishing wise financial habits early, having a general game plan, and understanding your relationship and responsibility with money during your early years will have a profound effect on your next thirty. I enjoy having conversations with people in this stage because I look forward to thirty years from now where we can reflect on positive decisions made and habits instilled.
The second critical period is as a pre-retiree. As one approaches retirement, there are countless decisions that must be made and planned for in order to achieve long-term plan success. It’s extremely difficult to grasp your lifestyle changing from 52 Saturday’s a year to 365 Saturday’s a year. Or having to pay for health insurance out of pocket. Or having real concerns for the first time about not having a paycheck or outliving your money. Decisions ranging from when to claim Social Security to how much to draw from retirement accounts to making sure your loved ones are taken care of all must be carefully planned for and discussed.
Thinking through these decisions and the effect they have on one another is the purpose of financial planning, and it’s the core of who we are at the Thigpen Group. A personalized, comprehensive financial plan, once created, is the best lens in which to make wise financial decisions on an ongoing basis. Planning is a journey with checkpoints along the way to make sure you remain on track in order to accomplish your goals. Emphasis on your goals. It’s certainly not a one-size-fits-all approach, because everyone’s goals and objectives, as well as fears and concerns, are different.
We recently launched a new initiative, 2020 Vision, in which we encourage you to explore the vision and goals you have for your life. As a part of this, we created some helpful guides as a starting point to help you think through these decisions. We encourage you to check these out on our website, and as you review the questions and ideas brought up, we would love to help you either begin a plan or keep you accountable as you pursue your goals.
I can’t go a week without hearing someone mention they wish to go back in time and begin planning earlier than they did. Proper planning allows for you to be free from the constant worries of whether you will be ok. It allows you to live your life, and to live it abundantly.
Bowen Thigpen is associated The Thigpen Group Wealth Advisors, 6360 I-55 N Ste 240 Jackson, MS (601) 713-8328 Investment advisory services offered through CWM, LLC an SEC Registered Investment Advisor.
