Value of PlanningI have been wearing the wrong size shoes for much of my adult life. Wrong length. Wrong width.
A consumer of habit, I did not know that I was buying the wrong shoe size; I simply continued buying the same size shoe year after year without allowing for any change or growth in my feet.
One day I stopped in a shoe store. Not the shoe department in a men’s clothing store, or the shoe section in a department store, nor a discount shoe store. A “real” shoe store with a shoe salesman who measured my feet. Prior to our meeting, my closest relationship with a shoe salesperson in the last decade had been to watch Al Bundy on “Married with Children.”
My salesman watched as I selected the style of shoe I wanted, a black loafer (the same style I always select, I should probably change this too) and then asked me if he could measure my feet. As he did, he asked me what size I normally wear and informed me that he would bring two sizes of the loafer for me to try, the size I normally wear and the size he thinks I should wear. I would simply select the style that was most comfortable.
After I selected the size suggested by my salesman, he told me that many people he saw were wearing the wrong size shoe. Seeing no reason to have their feet measured, they continue to buy the same incorrectly sized shoes throughout their lives. As uniformed consumers, we simply adapt to what we have and make it work.
Most of us have semi-annual dental check-ups, thanks to promotions by the American Dental Association. Many of us have periodic physicals, thanks to promotions by the American Medical Association. Few of us, however, follow through with having our feet measured on a periodic basis. We just do not think about the changes our feet undergo.
The same is true of our personal finances. Most people fail to recognize the changes their financial situation undergoes as they progress through life and neglect to schedule a periodic financial check-up.
What worked well in past years may not necessarily be the best method today. Many consumers waste a large portion of their taxable income by using a combination of outdated ideas and products. A very large number of people own the wrong kind and wrong amount of life insurance. Many people pay too much tax on their income. Most do not have an up-to-date estate plan. Most do not have efficient and adequate investments. If you fall into one or more of these categories, take the time now to analyze your financial situation. Look for areas in need of change.
As our lives change, so do our needs. Review some of the many new and varied financial products that have been developed in the last several years. It is easy to understand why the old way of computing taxable income, buying an investment, selecting an insurance policy or planning your financial future are no longer accurate.
Look at your own financial situation. Are your current decisions based on old data, old ideas and outdated products? If you do not know about the financial changes that have occurred, do you simply adapt what you have and make it work? If so, do you want to make a change?
You do not have to wait for the New Year to make financial resolutions. Resolve now to take decisive steps toward accomplishing some of your personal and professional financial goals. Become better informed. Attend a class or subscribe to a contemporary magazine. List in detail your financial goals and objectives. Quantify your goals in terms of time and dollars.
There are a number of viable solutions for meeting your financial goals. Each financial situation is different, and you will need to make changes that meet your individual needs.
Take some time now to ensure that you have a happy financial future. In addition to improving your health with semi-annual dental-checkups- add an annual financial review and improve your wealth.
Andrew M. Hudick, II
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