People Don't Plan To Fail, They Fail To Plan

Personal Note: This is one of those articles that sort of jolt you from financial slumber. In a very pragmatic and candid manner, Ken reminds us that the future is certain and it approaches without caring whether we are prepared for it or not. The statistics of individuals that fail to plan is just staggering, but it is a wake-up call that we need to take the bull by the horns and start, or remain persistent in, taking those necessary steps toward our financial security.

People Don't Plan To Fail, They Fail To Plan
By Ken Moraif

Check out these statistics: Seventy-two percent of Americans, once they reach the age of sixty-five, depend on Social Security, charity and family for income. Seventy-two percent! Twenty-three percent have to continue working. Only four percent are financially secure, and one percent are wealthy. That means ninety-five percent of people in the United States, the richest country that has ever existed, either have to continue working or rely on charity, Social Security and family for their income once they hit sixty-five. That's mind-boggling!

I don't think those people planned to fail; many of them just failed to plan. If you don't want to be in that ninety-five percent, I suggest you start making your plan today, beginning with these five steps:

Step 1 - Determine your goals. Ask yourself where you want to be in five years. Then write it down. A goal is a dream you put into writing. There is amazing power in writing something down.

Step 2 - Gather up all of your investment information. You may have accounts spread all over the place. Figure out where everything is. Get all your records together. Get organized so you can determine where you are financially right now.

Step 3 - Consult with a professional. There are some things in life that are way too important for you to do by yourself. You don't perform surgery on yourself, right? Professionals can tell you where you're weak, where you're strong. Seek advice from financial advisors, tax professionals, and people in the legal profession. Even the best athletes in the world have coaches that help them. The same principle should apply when it comes to your finances.

Step 4 - Decide to pay yourself first. If you're still working, you should be maxing out all the opportunities you have to save money. Do it. Take that money away from yourself before you get your greedy paws on it. You'll start to see your account grow, and as it does, you'll be motivated to save more. It's a wonderful thing and you should do it. Now.

Step 5 - Review your plan once a year. Look at where you are, not only based on where you were a year ago, but in regards to the five-year goal you made in Step 1.

If you start planning now, I think there's a better chance you'll be in the five percent of people who are financially secure after sixty-five. And that's where I want everyone to be. I'd like to convert the whole country to the idea of planning to increase their chances of being financially secure.

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