October is always the right month to do your financial planning, especially being a lawyer. Last year has been one of the most unpredictable years and the one advising you to keep your financial plans in place for the future. You need to have practical steps handy to ensure you are well prepared for the financial year ahead. Open the notepad and take down all your financial goals and the financial opportunities available in the market.
Why Is A Financial Plan Necessary?
In times of uncertainty, having done proper financial planning for lawyers come handy. Your cash is managed, assets are protected, retirement is planned, and real estate is invested in, in a financial plan. Thus you won’t feel a big setback in case of any unpredictable overturns. You will be better prepared for the future and have a smooth ride reaching your long-term goals.
Start the financial planning by reviewing your income, expenses and investments. Currently many of the lawyers are working from home, thus many things change in this scenario. There is a change in cash flow and expenses due to the pandemic and its risks to the family. There are opportunities created to save some money such as less travel, outdoor activities, fancy meals etc but there have been money out situations due to medical expenses.
Every family has gone and is going through a different financial situation. Take hold of yours by reviewing the earlier year plans and expenses to determine the plan for the coming days. You should consider diverting your savings into a long-term rainy-day fund while having at least six months of income to access easily.
Updating your lawyer eligible insurance plans is a must in these times. Also life is ever changing so however the economy performs your life is changing with kids growing, advancement in the career or the parents getting older, etc. The net worth is changing and so should the insurance plan.
Protection of the finance, you and your family is a requirement not an option, so the insurance coverage needs to be reviewed and updated. A financial professional can help you access the insurance plan and advise you on the further steps.