The purpose of financial planning is to attain financial security, which everyone defines differently.  In the ideal situation, we start early, establish goals, develop a plan, and consider as many contingencies as possible.  For example, we just helped some twenty something’s with a retirement plan, permanent insurance, and emergency fund. Assuming they stay the course, they will never have a money care in the world.  However, it does not always work out that way.

After Joe passed away, Susan’s spending problem really got out of control.  The house was paid for, but the shopping habit meant that more money was going out than was coming in.  A new budget was necessary.  There were small chunks of money in savings accounts and cd’s strewn across different places, but it was not much, and it was dwindling quickly.  Getting Susan to go to work
was a new concept, but it helped in two ways.  It got her out and about and her mind off things.  It also meant that she had much less time to go shopping.  She could use the income to do her clothing shopping.  Consolidating the small accounts and investing those funds has dramatically improved her financial picture.  It was a good time to get more aggressive with her savings.  Over the years, this move significantly increased her net worth.

Now, she works for fun, has plenty of money, and has not touched her savings.