Luck Isn't a Financial Plan
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By Bromwich+Smith Staff | 598 words | Reading Time: 3 minutes | Date: 2022/03/17
As we celebrate St. Patrick’s day today there are a lot of phrases that come to mind but the most prevalent one is probably the “luck of the Irish”.
Folklore says that Irish luck comes from Leprechauns. These elf-like creatures are said to have granted you three wishes in exchange for freedom and the opportunity to store pots of gold at the end of the rainbow. It is also a tradition to pinch anyone not wearing green on St Patrick’s Day. Apparently this is because Leprechauns are known to pinch, and if you wear green you are less likely to be spotted by them.
However, the luck of the Irish phrase does not come from the folklore of leprechauns but rather from the late 19th century, during the gold rush. Many well-known and wealthy miners at the time were Irish and it is thought this is where the reference to Irish luck first appeared. The actual word ‘luck’ is from the shortening of the Dutch word ‘gheluc’, which means happiness and good fortune.
How does this relate to financial planning and preparedness? Ultimately, like the luck of the Irish, many of us are hoping that luck with a good measure of fortune will help us in overcoming financial challenges. Unfortunately, we are not able to store pots of gold at the end of the rainbow like Leprechauns but we can take steps to prepare and ensure that our financial well-being is planned and considered.
Steps you can take
Step 1: Understand your finances
What your finances look like now, shapes your personal financial planning process so take stock of your income, expenses and debt.
Step 2: Define your financial goals
In defining your goals consider these three things:
- How much money you need to pay your bills.
- How much money you need to pay off your debts.
- How much money you’ll need to save and invest to achieve what you want.
Step 3: Pay debts and save.
Get your high-interest debts out of the way, before you start to save and invest. You may want to consider opening a savings account if you haven’t already. These accounts encourage monthly contributions that help you build a fund for emergencies or other substantial expenses you might need to pay down the road. At the same time, think about opening an investment account as the returns could get you closer to your saving goals.
Step 4: Put your financial plan into action
Now that you’ve formulated a plan, take time to review it. Talk to a financial planner to see whether you’ve overlooked something and make sure your numbers add up.
If you can’t afford one, talk to someone you trust, such as a close friend or family member. Once you’re confident you’ve created a solid personal financial plan, put it in motion.
Step 5: Monitor and evolve your financial plan
Your individual financial plan is a “living” document — it’s going to evolve as your financial footing changes. We recommend reviewing your personal financial plan every year or so.
In the end, by planning this way, you won’t need the luck of the Irish to get you to that pot of gold at the end of the rainbow. Just remember to wear green today as you definitely don’t want to get pinched by those wiley Leprechauns.
Nevertheless, if you are feeling financial stress and don’t know where to start, we’re here to help. With Bromwich+Smith you are never alone and we ensure that our expertise will leave you feeling hopeful and confident. Call our Licensed Insolvency Trustees today for a free, no obligation, confidential consultation 1-855-884-9243. Let’s see you flourish!