Money Monday: What is financial planning?

Money Monday

LANSING, Mich. (WLNS) — This week’s Money Monday segment is on financial planning.

Our local money expert Steven Schiestel was back in the studio this week to discuss creating a financial plan.

Here is the conversation:

“Everything starts with a financial plan. Sitting down and thinking about our goals and our objectives and putting something in place to help us guide those with those decisions.

So what, what’s the first step then?

Step one. Think about what are our values, the things that kind of drive our decisions.

The second part would be thinking about different goals, different objectives.

That would be kind of be what we want to do and making sure that our financial goals aligned with those financial values.

What are my priorities? You know, you have my mortgage payment, I have the bills that I have to pay, and my taxes. That’s where it starts and then you go from there.

It can be as simple as that. Oftentimes it can be as simple as sitting down with a piece of notebook paper and thinking through it. What are the things I own, all the income coming in income, going out, how that fits into goals.

Additionally, hiring a financial advisor and having them create a computer-oriented output. It’s the thought process of getting our stuff organized in order and knowing where we want to take it.

So it was almost like having the end destination in mind and then saying, how do I get from here to where, whatever that point is in.

Now more than ever.

We know that these financial plans can change because of COVID-19 or whatever it is.

What do you do when suddenly you don’t make as much money or you have less money coming in?

How does that change the plan? And that’s why it’s important to have a holistic plan. There’s one way we can really dial in with maybe just investments. And I think that’s the part that a lot of people really think about because it’s in the news all the time, but having a broad plan.

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