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Retirely in The things you own end up owning you,

The Greatest Risk to Your Financial Success

There are a lot of risks to having financial success.  One risk is spending too much.  Even spending an extra $5,000 per year over your sustainable spend rate can have a significant impact on your long term financial picture.  Another large risk is taking on more risk than you should in the stock market.  This is why it’s important to evaluate your risk capacity and make adjustments when necessary.  Another risk is not saving enough toward your goals, like college expenses or retirement.  But the greatest risk to your personal financial success is you.

Just as the greatest risk to your health is you ignoring warning signs or not making lifestyle changes when needed, like exercising more or eating more nutritious food, likewise the greatest risk to your financial success is you not doing anything about your financial situation.  It’s so easy to make the following excuses:

  1. I don’t have time right now. I’ll do it later. If you don’t think you have time now, what makes you think you will find time later?  Waiting until later is a risk that you’re taking and means that you could miss out on years of opportunities.
  2. I’ll work on my finances when I’m older. Each day you grow older.  And taking advantage of opportunities when you’re young gives you a lot more flexibility with your finances when you’re older.  It’s extremely rare that an individual gets to retire at age 55 without a lot of prior planning.
  3. I’ll plan for retirement when it gets closer. If you haven’t started planning for retirement yet, you need to start today!  The earlier you start, the more prepared you will be and the more flexibility you will have.
  4. I don’t have enough money to need a financial advisor. There are financial advisors that work with all levels of net worth.  Not having “enough” doesn’t disqualify you from needing financial direction.  To the contrary, having good financial direction could help get you to your target net worth.
  5. I don’t make enough money to need a savings strategy. Your salary has nothing to do with whether you need to organize your finances or get a savings strategy in place.

No matter what age, income level or net worth you find yourself in, ignoring your finances and not doing anything is choosing not to put yourself in an optimal financial position.  If your goals are important to you, then they’re worth taking the time to plan for.  Please do not wait.  Take control of your finances now.

*This article was originally posted here.

Grace Kvantas is a Certified Financial Planner™ at Financial Symmetry, Inc located in Raleigh, NC. She is a member of NAPFA, NAPFA Genesis , the Financial Planning Association and FPA NexGen, and she has been quoted in InvestmentNews.

Contact Grace: 919-851-8200  gkvantas@financialsymmetry.com

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