Where Am I on the Path?

The first step in planning anything with your financial advisor is to identify where you are in your stage of life right now. Someone working an entry-level job after the first few years of graduating college will be at a different stage in life than someone married and saving for retirement or kids. No spot on the path is ever wrong or bad; they are simply different. 

What Stage Am I In? 

Many clients come in using the Dave Ramsey List to distinguish the different financial stages one can be in. These stages include seven baby steps that are all designed to move you forward. 

Baby Step 1 – $1,000 to start an Emergency Fund.

Baby Step 2 – Pay off all debt using the Debt Snowball.

Baby Step 3 – 3 to 6 months of expenses in savings.

Baby Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement.

Baby Step 5 – College funding for children.

Baby Step 6 – Pay off home early.

AO Wealth Approach

Visualizing Your Path & Goals 

Remember the vision boards that you were asked to make throughout the different grades in school? The board you made in second grade most likely looked much different from the one you created in middle school and high school. Those vision boards were filled with goals you wanted to achieve, people you looked up to, and things you enjoyed. 

Vision boards served as a daily reminder to keep your goals in mind. There is a powerful tip that says you are much more likely to achieve your goals if you write them down. The same goes for your financial goals. If you can see the financial steps and milestones you want to achieve, your daily habits will start to shift to accomplish them. 

Related: Money and Marriage

Overcoming the Hurdles

Each stage of life comes with its own set of challenges and hurdles along the way. While they are filled with exciting events and moments, no stage is 100% easy. 

Let’s say you are working through your first entry-level job and are budgeting for a raise to be able to save more. In this stage, it could be possible that you also have student loan payments to cover. Another example could be that you are moving to another state to start on a new journey but still have to put money towards rent. 

At AO Wealth Advisory, our Financial Planners are here to help you jump these hurdles in the best possible way that works for YOU. The best financial plans are often the ones you think will stick for you, not what everyone else might be doing. Our services are full of resources to find a plan that is customized, successful, and strong. 

Advisory services offered through A.O. Wealth Advisory, LLC, a registered investment adviser.