Work out a plan

Most mornings, I sit with a cup of coffee and think about exercising. "I am going to do it," I say to myself. "I will work out. No matter what the day throws at me, I want to go to the gym."

Most evenings, I slide into bed having not worked out.

My laziness holds a lesson. Much like experts trying to talk us into a recession, just because we say something is going to happen doesn't make it happen. Planning - and holding to the plan - makes the difference.

Recent studies have found only around 1 in 3 Americans have a financial plan in place (I'm certain the fractions are even smaller for Americans under the age of 50). The vast majority of us are hoping that our long-term economic situation will be ok, while having no plan of action to make it so. As the saying goes, "Failing to plan is planning to fail."

Why is having a financial plan in place and executing on it so important? It requires you to recognize your goals and not get distracted on the way to achieving them. Think about our country's current economic situation. Since the Federal Reserve began raising interest rates in spring of 2022, there has been a growing consensus that recession is around the corner. What has actually occurred? Here's Kenny Loggins to explain. 

• The U.S. economy was on a highway to the danger zone. 
• Experts warned repeatedly that this is it. 
• With every positive jobs report and receding inflation metric, it appears the economy is telling us, "I'm alright." 

For people who haven't planned, every economic 180 like the one above is a potential panic button moment, an opportunity to be tossed around by the prevailing winds of the week. Establishing a plan, and sticking to it regardless of what experts are predicting in the near future, is the best way to avoid panicking based on "this report" or "that analysis."

As I mentioned in last month's newsletter, saving aggressively regardless of your age bracket is a great start. But don't wait until you're a member of AARP to talk with a trusted financial advisor and set up your financial plan. It's the best way to ride out all the real or imagined waves on your way to a financially secure future. 

Now, if you'll excuse me, I need to go work out. 

Takeaways

Work with an advisor to establish a financial plan and stick with it. It will help you actually achieve your goals, and will stop short-term predictions that may or may not happen from impacting your peace of mind.

What does your financial plan look like? What planning tools do you like to use? Was it possible to make a movie soundtrack in the 1980s without Kenny Loggins? Let me know your thoughts below!