Financial Planning: Why It's More Than Just a Numbers Game

Financial Planning: Why It's More Than Just a Numbers Game

From your budget to your investment dividends, there are a slew of calculations—both simple and sophisticated—involved in financial planning.

But your finances are about much more than just the math.


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After all, a financial plan is ultimately about putting your money behind your values, to help you get closer to achieving what you really want in life.

In fact, your reason for getting a plan in the first place should help guide which allocations will work best for you. Buying a home, supporting a family, traveling the globe, and enjoying a comfortable retirement—these are all potential outcomes of getting the numbers right.

But the reality is that how you feel about your money also matters, and if you have a poor plan in place for your finances, it can lead to all sorts of negative consequences:

In the office: Over 60% of human resource professionals say financial stress is having an effect on employee work performance.

On our relationships: Research suggests that arguing about money may be the top predictor of divorce.

On our physical health: Financial worries have been correlated with anxiety and digestive issues, which are representative of chronic stress.

And based on recent research compiled on clients entering the LearnVest program, there's a significant correlation between age and how confident people feel about their money. Until people reach their mid-20s, financial confidence is actually rather high. But then it takes a big nosedive as financial responsibilities—and stresses—increase with age.
But there may be a solution: A study by the CFP Board found that people across age and income levels who adopt a financial plan tend to feel more confident about their money decision-making skills, save more, and feel better about the progress they’ve made on their financial goals.

RELATED: The Financial Confidence Crisis (and How We Might Solve It)

LearnVest Planning Services is a registered investment adviser and subsidiary of LearnVest, Inc., that provides financial plans for its clients. Information shown is for illustrative purposes only and is not intended as investment, legal or tax planning advice. Please consult a financial adviser, attorney or tax specialist for advice specific to your financial situation. LearnVest Planning Services and any third parties listed, linked to or otherwise appearing in this message are separate and unaffiliated and are not responsible for each other’s products, services or policies.


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