How financial planning helps you work towards your self-improvement goals

Published on October 1, 2020 | LPL Financial

Many self-improvement goals focus on stability and personal growth — and financial goals are often no different. From buying your first home to saving for retirement, planning your finances can also help you work toward your personal goals. Learn more about why self-improvement is so important and how good financial planning will complement the goals you’ve set.

Why self-improvement?

Self-improvement is never one-size-fits-all. This means that no matter how happy you are with your current life, there can always be room for improvement. And by making small, incremental changes, over time, you can shift your lifestyle and your state of mind.

Self-improvement can take many different forms. For some, it may mean replacing bad habits with better ones. For others, it can involve striving toward a tangible goal, like learning a second language or hiking the Appalachian Trail. By having something to consistently work towards, you’ll be focused on solutions, not mired in the problems of the past.

How financial planning can help

Self-improvement goals tend to focus on personal or vocational habits, from waking up earlier to joining a trade association and attending networking events. But some goalsÑlike buying a home, finding your dream job, or paying for that vacation you’ve always wanted to take—can also implicate financial planning principles. By tracking your money more carefully and prioritizing your goals, you’ll be well-equipped to tackle whatever life can throw at you.

• Set up a spending plan. For many, “budget” implies the same restrictive connotations as “diet.” But in reality, a budget is no more than a spending plan, helping you decide how much money to set aside toward certain expenses and savings goals.
• List your priorities. If you’re eager to buy a home, setting this as a tangible goal (including savings benchmarks you want to reach) can give you the willpower you need to say no to budget-draining purchases.
• Visualize success. When you’re working toward a financial goal, it can be tough to see the big picture. Whether you create a vision board or simply spend a few minutes a day imagining what you’ll do once you reach your goal, seeing this success in your mind can boost your drive to succeed.
• Find others with similar goals. Talking about money is still taboo in many groups. But by finding friends with similar financial or personal goals, you’ll gain a built-in cheering section while also cheering others forging their own paths.

Above all, remember that moderation is the key. Worthwhile changes don’t happen overnight, but by making many small shifts, you can begin to grow into the person you’ve always wanted to be.

Important disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

Content Provider: WriterAccess