5 Reasons Your Financial Plan Is Failing

5 Reasons Your Financial Plan is Failing

Are you on track for financial freedom? If you don’t know the answer to this question, you’re not alone. 

Most people think the answer is how much more they have left before the house is paid off, how much left on the student loans, the balance of their retirement fund, the stock market’s performance, the Federal Reserve chair’s economic analysis, or interest rates. 

While these things paint the landscape along the road to financial freedom, they have almost nothing to do with your progress. Really, these answers avoid the question.

The problem is that you can do all the analysis and understand the market factors, possibly make a lot of money when times are good, but still have the same nagging fear that you’ll lose it all or lose control. Today, we’re speaking out about the reasons why your financial plan is failing, and why so many good people with good intentions who are doing “all the right things” are still getting derailed.

It’s not interest rates, the stock market, inflation, or having selected the wrong risk tolerance.

So if you want to find out exactly why you’re not where you want to be… tune in now!

Do you find yourself asking questions like:

  • Do I have enough money?
  • Am I managing my money correctly?
  • Do I have enough cash flow?
  • Will I be able to afford retirement?
  • Can I put my children through college?
  • Am I going to be able to grow my business the way I want to?

If you are, first know that you’re not alone and that there are solutions for you. Your financial experience doesn’t have to keep you up at night, and we want to help you jump over any hurdles on your path. 

We know that there are financial struggles at every income level—no matter how well someone appears to be doing from the outside. And in the same vein, there are also solutions at every income level.

In today’s post, we want to address the five reasons your financial plan is failing, so that you can rectify them and get back on track to financial freedom.

The “Problem” with Financial Advice

Financial advice can be tricky because there are so many moving parts. You could talk with a broker and get one strategy, a CPA and get another, and a life insurance agent and get something completely different! Not to mention, when you go online and do the research yourself, you’ll read hundreds of conflicting viewpoints.

It can seem like there are no right answers, or that you have to have a degree in finance or economics to really understand anything, yet that’s not true. We want to help you sift through the noise and put together something cohesive that works for you. 

First things first: you don’t have to do it all or start by doing everything. Sometimes mastering one strategy, and making it your own, can make a huge difference. Find something or someone that aligns with your values, and start somewhere.

5 Reasons Your Financial Plan is Failing

1. You’re Not Taking Action

When it comes to your financial future, one of the best things you can do is take action. If you let fear of failure keep you in a state of inaction, you can hinder any forward momentum. It’s important to acknowledge the things you’re afraid of—like losing money—so that you can take actions that will better your odds and your current circumstances. 

Because the reality is, there are too many variables outside of your control. The stock market and the economy will continue to change, even if you don’t take action. So what actions can you take to protect yourself and your finances now, so you can make riskier decisions with greater confidence?

2. You Haven’t Defined What Financial Freedom Means to You

Another reason we see people struggling with their financial plan because they haven’t defined what financial freedom means. Financial freedom is not a dollar figure, or a certain amount of cash flowing properties. It’s not a fully paid-off house, and certainly not a certain net worth.

5 Reasons Your Financial Plan Is Failing

Financial freedom, we believe, is a reliable income stream that is sufficient to not have to worry at night. Because as long as you’re stressing about how you’re going to pay the bills, you’re not financially free. Your mental and emotional energy is tied up.

And this isn’t just a “now” problem. You may be able to pay your bills now, but worry about twenty years in the future when your kids are in school or you’re ready to retire. And those fears for the future affect your decisions now. 

You can also define financial freedom in a more personal way. Is financial freedom the ability to do what you want, when you want to do it? Is it more time spent with your family (and not stressing about making ends meet)? 

3. You’re Distracted

Your business is your area of expertise, and your focus should be there. Yet it’s easy to get distracted by “shiny objects” like cryptocurrency and the stock market. The problem is that when you spread yourself too thin, without the expertise to do well, you expose yourself to a lot more risk. 

You don’t have the time to become an expert in every market or niche—no one does. In order to be successful, you have to stay focused on your area of genius and really carve out a place for yourself. 

We’re not saying that you shouldn’t try new things or diversify your portfolio. However, your main focus should be your business. After all, you only have 24 hours in a day. For anything else, it’s ideal to bring in experts who can help you with other investments correctly, or spend the time to put in the work to educate yourself. Don’t spend all your time chasing the “next big thing,” or you’ll always be running. 

4. You’re Guessing 

This is a big problem we see across the board—too much guesswork! You’re guessing at investments, you’re guessing how much you’ll need in retirement based on how long you guess you might live. And the list goes on! 

Unfortunately, the likelihood of success when you’re guessing is slim. If we use all of these guesses and predictions about how much we should earn and save to form a financial plan, it’s all based on a giant amount of guesswork. And the problem is that none of these factors are within your control.

You can’t control how long you live, what your exact medical bills will be, what inflation will be, and what taxes will be. This is a really insecure place to be, and can be a source of undercover anxiety. 

Instead, you have to be in as much control as possible. That means building cash flowing streams of income, which can become more cash flowing assets. This will lead to more predictable income in the future. 

5. You’re Making Things Complicated

Really, this hearkens back to the first point. When it comes to a financial plan, people can sometimes overcomplicate things with research and spreadsheets and software. The reality is, there’s a tipping point at which you must take action on something. Because while knowledge is always going to be a worthwhile endeavor, the endless pursuit of facts and figures can hold you back from taking action. You get stuck in analysis paralysis. 

Be willing to learn, but also be willing to keep things simple and start small. You have your whole life to build upon the financial foundation you start today. The important thing is that you start today. 

Are You Doing the Best You Can with What You Have?

We believe that a strong financial plan boils down to this question. Financial freedom isn’t a dollar figure—it’s the pursuit of making the most with what you have. And you need only to take a step, and then another step.

Book A Strategy Call

Do you want to coordinate your finances so that everything works together to improve your life today, accelerate time and money freedom, and leave the greatest legacy? We can help!  

Book an Introductory Call with our team today https://themoneyadvantage.com/calendar/, and find out how Privatized Banking, alternative investments, or cash flow strategies can help you accomplish your goals better and faster.

That being said, if you want to find out more about how Privatized Banking gives you the most safety, liquidity, and growth  … plus boosts your investment returns, and guarantees a legacy, go to https://privatizedbankingsecrets.com/freeguide to learn more.

Rachel Marshall

Rachel Marshall is the Co-Founder and Chief Financial Educator of The Money Advantage and President of Marshall's Insurance and Financial Services. She is known for making money simple, fun, and doable. Rachel has built a team of licensed professionals (investment advisors, insurance agents, attorneys, tax strategists) to help her clients create time and money freedom with cash flow strategies, Privatized Banking, and alternative investments. Rachel is the co-host of The Money Advantage podcast, the popular business and personal finance show. She teaches how to keep more of the money you make, protect it, and turn it into cash-flowing assets.
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