Hello, HFN family! Emma Foulkes here, ready to help you take control of your financial journey. I know that preparing for financial success can feel overwhelming, but trust me—it all starts with one simple step: gathering your financial documents. Today, I’m going to show you exactly how to get started.
Did you know that only 33% of Americans have a formal financial plan? Let’s work together to increase that number. The first step toward financial freedom is knowing where you stand. That’s why it’s so important to organize your financial, insurance, and estate planning documents.
Why You Should Gather Your Documents Now
You wouldn’t build a house without a blueprint, right? The same goes for your finances. Before you can plan for your future, you need to see exactly where you are today. By gathering these key documents, you’ll create a solid foundation that will make your financial planning smoother and less stressful.
Start With These Documents:
- Bank Statements: Review your checking and savings accounts to understand your income and spending habits. Start by pulling the last three months of statements.
- Investment Accounts: Your retirement and investment accounts are crucial. Collect your IRA, 401(k), and brokerage account statements to get a clear view of how much you’re setting aside for the future.
- Insurance Policies: Make sure you know what insurance coverage you have. Gather your life, health, auto, and home insurance policies and check for any gaps.
- Estate Planning Documents: If you already have a will or trust, bring those documents together. If not, it’s time to start thinking about creating them. Decide who will manage your estate and how you want to distribute your assets.
Need Help?
Don’t worry—you don’t have to figure this out on your own. The CFP Board provides excellent resources to help you get organized. Head over to Let’s Make a Plan to find CERTIFIED FINANCIAL PLANNING professionals who can guide you.
What’s Next?
Once you have these documents in order, you’re ready to set your financial goals. In my next blog post, I’ll walk you through how to create SMART goals that will keep you on track toward financial success.
