This is a personal finance podcast, but today in episode 79 of What the Wealth, we will talk about something a little different-the importance of having a plan.
A Financial Plan
Talking about having a plan is a bit cliche in the world of personal finance and financial advisors. It’s essential to be sure, but most people know that in order to live out their dreams, they need a plan, just like we all know that we need driving directions to reach our destination.
But the problem sometimes is that while we know we need a plan, we don’t actually create a plan. Knowing we need to do something and actually doing it are two different things. That’s where the real value of having a financial advisor comes into play. They can take you from planning to doing.
Recently I met with some potential new clients, and they asked me if I could invest their money better than they could. But that’s not what a good financial advisor does. I’m not trying to beat the market. My job and my goal is to form a plan for a client to benchmark their returns against.
Your plan should put you on track to pursue your dreams and core values so you can live the life you love, and that’s what we set out to do for our clients. Some years we might beat the market, other years we won’t. As long as we’re on track with the plan we’ve created, we’re on the right track and where we need to be.
Another Kind of Plan
What I really want to talk about today is a different kind of plan. My roots are in Little Rock, Arkansas. I live in Tennessee now, but I still have many family members, friends, and colleagues back in Arkansas, which was recently devastated by tornadoes.
Luckily, everyone I know personally is okay, and none of them suffered property damage. But the same can’t be said for the area in general. Swathes of the state were severely damaged, and it’s going to take a long time to clean up and rebuild.
And this is something that seems to be happening more and more often, whether it’s tornadoes, hurricanes, fires, or a new one, train derailments that spill and ignite chemicals. These things can happen in seconds, without warning, and turn people’s lives upside down.
I’m not an end-of-the-world-prepper prepared to live off the grid in case of a nuclear war or zombie uprising. I can’t control those things, and I’m an optimist at heart. Humanity has weathered some bad storms, literal and figurative, and always come out the other side better than before. History bears this out.
But I do believe in having a plan for the unexpected. It’s not a complicated plan that requires building a bunker and burying gold in the yard. Just have a go-bag, or a bug-out bag prepared for each member of your family. They don’t have to be elaborate; they should contain some basics that will keep everyone comfortable for a few days until things settle down.
What to Prep
- A change of clothes
- Some cash
- Non-perishable foods and snacks
- A phone and computer charger
- A battery pack for a cell phone
- Basic first aid supplies
- A few days of any prescription medications
- A battery-operated radio
- A flashlight and batteries
- Vital documents in a waterproof bag
- Sturdy boots
- Pet supplies
These bags should be kept in an easily accessible place and periodically updated with fresh batteries, food, and water. We have plans for vehicle and home maintenance. We have a plan for retirement. But we don’t have a plan for an unexpected emergency that could turn our lives upside down.
I challenge you to take a little time and money to make go bags for each person in your family.
If you have financial planning questions, reach out; we’re here to help.
And check out my new YouTube channels. The videos are short, walk and talks, where I take a stroll and talk about whatever’s on my mind. I have a Paradigm Wealth Partners channel, too, and have recently created an Instagram page.
Listen to the Full Episode:
What You’ll Learn In Today’s Episode:
- What financial advisors are there to do.
- The important things to plan outside of finances.
- How even a small plan can help you better weather a storm.
- Ideas for the basics of setting up your go-bag and maintaining it.
- My challenge for you.
Ideas Worth Sharing:
- “I’m not trying to beat the market. What I’m trying to do is formulate a plan and benchmark the returns against that plan.” – Jonathan Bednar
- “It all goes back to having a plan. You hope none of this happens, but what you’re trying to do is plan—and should your life get turned upside-down, you’ll have something that can help you better weather the storm.” – Jonathan Bednar
- “Take a few minutes over the next couple weeks and position a bag so that if you are in a place that has hurricanes, tornados, or forest fires, you’ll have a few comfort items to help get through that turbulent time.” – Jonathan Bednar
Resources In Today’s Episode:
- What The Wealth?! by Jonathan Bednar
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