Jerod Fenton,
CFP®, RFC, CSA
Senior Financial Advisor

My father used this statement on a regular basis when I was growing up, usually in the context of my preparation for an athletic event. In recent years I have found myself using this statement with my clients as it pertains to their financial goals.

I have had the privilege of working with hundreds of family's during my career, and have witnessed first hand the benefits of planning and preparing. On the flip side I have seen the disastrous result of failure to plan.

The mere act of setting goals and establishing a written plan is extremely effective, yet most people don't bother doing it. In the book What They Don't Teach You at Harvard Business School, Mark McCormack cites an interesting study conducted on students in the 1979 Harvard MBA program. In that year, the students were asked, "Have you set clear, written goals for your future and made plans to accomplish them?" Only three percent of the graduates had written goals and plans; 13% had goals, but they were not in writing; and a whopping 84% had no specific goals at all.

In 1987, Harvard followed up, and the findings were astonishing. The 13% of the class who had goals were earning, on average, twice as much as the 84% who had no goals at all. The most eye opening result of the study was that the three percent who had clear, written goals were earning, on average, ten times as much as the other 97% combined.

Knowing the power of having a plan, specifically a written plan, I find it frustrating that so few people take the time to apply this discipline to their financial life. According to a recent national survey conducted by American Express Financial Advisors, only one in ten Americans have a written financial plan, yet overcoming their financial concerns tops the "wish list". The survey shows that Americans spend more time worrying about their finances than managing them.
The good news is, there is ample opportunity to improve these statistics. The internet is full of tools to assist in the planning process, and there are many professionals who offer educational workshops for a small fee or no fee at all. A small investment of time can yield big returns when it comes to planning for the future.

For local educational workshops on a variety of financial topics, please visit www.financiallifestrategies.org or call 866-518-6848 for a list of upcoming topics.

Our next seminar is Wednesday May 28th, at 10am.