Financial Planning... Is it the actual key to success?

Have you ever met someone who comes up with brilliant revenue-generating ideas? The next best thing. But they still seem to stress about money and live paycheque to paycheque. Yea.. Me too. I can think of tons of people in this category. That's why I will get a bit controversial here and say that financial planning is the key to small business success.

Obviously, you need to have money to have a financial plan. I learned this the hard way as a broke student longing to begin accumulating wealth... With nothing... LOL. So, I'm not saying that a sound financial plan will trump a great product or service. I'm just saying that without a financial plan, you're far more likely to make poor choices with your resources and suffer long-term because of it. Missed opportunities - that's what I want you to avoid.

I first started my career in the business world as an intern at a financial planning office. The information I learned there has set me up for success, and my time there taught me that I knew nothing about how wealth was generated. For example, did you know it only takes $600 a month in savings to be a guaranteed millionaire (if invested wisely and starting at age 25) into retirement? Oh! And if you're a higher income earner, the $600 monthly contribution to an RRSP will save you money on your tax bill. It's a double win, really. So, why don't people talk about this more? Paying yourself first should always be a priority. That way, when you feel flat broke (cause trust me, you'll still feel broke. lol), you can rest well knowing that you're saving for a delightful future.

It is shocking how many people misunderstand financial planning concepts - including many CPAs (sorry!). So, make sure that, along with a diligent tax professional, you hire a Certified Financial Planner (CFP) for optimal success. They will help ensure you utilize your RRSP room and fill those TFSAs with great investment options. The knowledge you'll gain sitting down with a CFP each year will change the game for you.

Finally, start budgeting. I'm sorry, but one of the best things I've ever done for myself was to start tracking my net worth and spending (budget!) each month. It allowed me to know exactly how much revenue I need each month to cover my expenses, which allowed me to quit my 9-5 and chase this wild dream. This is an essential step in achieving financial freedom.

I went from a 9-5 office grind in finance - honestly, it was so boring. To helping my husband with reno projects between meetings, travelling with him around the globe and spending way too much time opening the door for my dog (the real queen). We will spend another winter in Australia, where I will finish my MBA (in cash!) and continue serving my lovely clients. This life is good! Don't miss out on it because you unknowingly squander your money away. You probably have the financial freedom to change your life - you just need to find it.

To help you accomplish this, I am happy to set you all up with my personal net worth tracker and budget system. So, either comment below or contact me privately on my contact page if you're interested in a fully automated spreadsheet tracking system. This tool will help you keep track of the essential metrics that bring your financial story to the forefront, allowing you to make more informed decisions. I will send you the tool and provide a 15-minute set-up meeting for $36.99+GST.

Okay, so to recap, here are my three pieces of advice for optimal financial success:

Get the best CPA you can afford. I have recommendations for you if you want. I've never regretted a pricey tax planning bill, and you won't either.

- Find a diligent financial planner, and follow their rules. - Again, I can make recommendations if you're looking.

- Consider purchasing my wealth tracker and budget spreadsheet. This will save you heaps of time at the CFP office and will be invaluable the next time you're sitting across from a banker looking for money to fund your next thing - whatever that thing is.

Oh, and if your next thing happens to be a business opportunity, call me. I'm a business planning whiz.

One last thing: if you're already filthy rich (mad respect!), I understand this blog post doesn't apply to you. Today, I'm here to support the mom and pops, the 1st generation wealth generators and the people who are grinding but struggling to get ahead in our inflated economy. To achieve optimal business success, you must set your finances up for success. This is a non-negotiable.

You've got this, friend!

Sam

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About the photo: I've chosen it because it signifies a time in our life when Cody and I could splurge - something we've rarely done because we've both been students since we were married. We spent an extra $200 a night for this hotel room view and could feel okay about it because we had already automatically saved for an excellent early retirement. We rode water taxis and ate kangaroo steak on the pier. It was incredible. Don't forget to live for TODAY and TOMORROW. Life's short, and retirement is no guarantee. But you also don't want to be stuck eating ramen into retirement, should you last that long. Life is all about balance; don't forget that.