Financial Planning Important in State of Economy

Anne | 1/28/2009, 12:35 p.m.

The National Bureau of Economic Research (NBER) officially declared late in 2008, that our country was in a recession. As we continue to move through 2009, the government is continuing to bail out Wall Street and other major business corporations; the stock market continues to roller coaster up and down; healthcare costs continue to sky rocket; the credit crisis is still out of control; more than 800,000 jobs have been lost so far; humanitarian organizations are having to either turn people away or limit their resources of help to people in need due to decreases in funding and donations; and now, many famous retail giants are either filing for bankruptcy or closing for business for good.
So what does that mean for us? It means that it is even more imperative now, than ever before, that we all take a good hard look at our own financial pictures. Although we all have faith our new President, Barack Obama, will restore balance back into our economy, it will not happen overnight. We must do our part as well. With the state of the economy, financial planning is a must if we want to have a financially secure future for ourselves, our children, and grandchildren.

Unfortunately, many people still think of financial planning as having huge sums of money to put into an investment. It is much deeper than that. No matter how much income you earn, you have to really learn and understand how your money works. It goes beyond earning a paycheck and paying the bills. Sure, we all go through hard times sometimes but, through solid financial planning, even when you go through the toughest of times, you can still come out ahead.

I want to ask you a few questions:
€ Do you have credit card debt? Do you know how to properly pay it off?
€ Do you know how to pay off your mortgage in a fraction of the time?
€ Do you have a car note, mortgage, or pay rent? How will you and your family continue to live if you become sick or disabled? Can you afford to be without a paycheck while you recover?
€ Do you have dependent children, a spouse, or other family member who depends on your income? What will happen to them if something should happen to you?
€ Do you want your children or grandchildren to go to college?
€ Do you have a retirement plan, or is it continuing to dwindle because of the changes in the market?
€ Are you properly insured?
€ Are you a business owner? Do you have a continuation plan?

These are just a few questions that need to be asked and given an honest answer to if you want to have a solid financial future. Financial planning takes dedication and commitment. Are you ready to invest in your own financial future and the financial future of your children?

There are numerous components of financial planning that we will cover this year to help you reach the desired end result, €becoming debt free; creating and accumulating wealth!€ Aside from winning the lottery or being left a large inheritance, financial planning is your only option towards that desired end result. Each month, I will cover specific topics that will give you some answers to these questions and more. Next month, we will cover €The elements of a sound financial plan.€

For questions or comments about this article contact Jennell Burke at 301-324-1346 or send an e-mail to BurkeFinancial@gmail.com.