Nine Year Mortgage: Are financial plans just for the rich??
Many Americans assume that financial planning is only for those who have so much money spilling over that they do not know what to do with it. This is the opposite of the truth. Financial plans are for everyone, but unfortunately most people do not use them. In fact according to the 2012 Household Financial Planning Survey conducted by the Certified Financial Planner Board of Standards, only 31% of the financial decision makers in a home say that they have a detailed financial plan.
According to the same study only 35% of people have a plan in place to save for emergencies, retirement, a child’s education, or a down payment for a large purchase such as a home. Nine Year Mortgage conveys that it is important to put a higher emphasis on financial planning, and to change peoples mindset that financial plans are only for the rich.
How did the rich get rich?
Nine Year Mortgage knows that for most people with a higher income, the money did not just fall into their lap. They worked for it, and with equal importance they planned for it. Tom Pemberton, a certified financial planner and owner of DBA Pemberton Financial Planning said, “The way you get into the higher income bracket is to have a financial plan.”
Another piece of good advice is to begin financial planning at a young age. Nine Year Mortgage advises that the sooner you implement financial plans into your life, the more comfortable and familiar you will become with having them. In fact, Pemberton suggests that people begin financial planning in their twenties, to avoid making bad financial decisions. He says, “ If you look at people who are financially successful most of them have been making very smart financial decisions all their life. The sooner you start making smart decisions, the sooner you know where you want to go, and if you have a plan to get there, the more likely you are to attain it. Time is the one thing nobody can give us. If you start in your 20s, you don’t have to save that much. The longer you wait, the more you have to save to make that goal.”
However, Nine Year Mortgage knows that even if you did not start financial planning young, it is not too late to start! Here are eight good reasons to have or start a financial plan.
1. It will help you define your financial goals.
Financial planners often begin by asking what you would like to accomplish in life, financially. For many couples this question alone will make a significant difference.
2. It will help you see how realistic your goals are, especially in accordance with your timeline.
After defining your goals, Nine Year Mortgage believes it is important to determine how to get there by asking questions like, how much should I save and what kinds of investments should be made? Pemberton adds, “The planner can do a cost-benefit analysis. Are your goals realistic? Are they attainable? Most of us have more goals than financial resources.” He also notes that time can be a large factor. Many goals, like paying off debt, can take years to accomplish.
3. It will help you see how you can bring spending in line with your goals.
Once you have established your goals, Nine Year Mortgage thinks you should take a look at your cash flow and spending habits. If you have a negative cash flow, there is no way you will be able to reach your goals. Pemberton says that the exercise of looking at cash flow often surprises people. He states that “they say, ‘I had no idea I was spending that much on Starbucks or eating out!’”
4. It will show you what financial mistakes you are currently making.
A financial plan can help you not just analyze spending, but the whole picture. When the whole picture is revealed it is easy to see some of the mistakes being made, but also the easy fixes to those mistakes!
Nine Year Mortgage states that once you have a financial plan in place, it is easy to establish measurable goals and to notice if progress is being made or not.
6. It will help you find new ways to maximize your money.
An outside expert can bring new ideas into your financial situation that will help you to make or save money. An example that Pemberton points out is that many people do not take advantage of their company matching 401k plan. A plan that he says is a “guaranteed 100% return on investment.”
7. It will help you build wealth.
The CFP Board survey shows that those who have a financial plan are more likely to pay their credit card bills in full. It also shows that people making less than $25,000 that have a financial plan are more likely to pay off their credit card than those making more than $25,000 that do not have a plan.
8. It will help you live more comfortably.
The CFP Board survey also found that those with a financial plan and making between $50,000- $99,999 are living more comfortably than those without a plan who make more that $100,000! Nine Year Mortgage believes it is better to live with less money and be comfortable than to live with more money and be uncomfortable.
Even if you do not seek a professional financial planner to help you organize your finances, Nine Year Mortgage still recommends making your own financial plan to help you become better prepared for the future, live more comfortably, and reach your financial goals.
Will The Nine Year Mortgage Plan Work For Me?
To learn more about Nine Year Mortgage, and to find out if you qualify for the Nine Year Mortgage program. Find out how soon you could be completely debt free, including your mortgage, with the Nine Year Mortgage Financial Plan. Find out what thousands of satisfied clients already know about taking control of their finances, and using the power of reverse compounding interest to beat the banks at their own game! Nine Year Mortgage representatives are standing by to answer all of your questions about our program, including how soon you will be debt free, and how much money you will save in interest! For more great money-saving ideas visit 9 Year Mortgage on YouTube or go directly to the 9 Year Mortgage Money Saving Minute. Nine Year Mortgage recently launched their Eliminating Debt with 9 Year Mortgage site , which is also full of valuable, free information.