It’s no secret that financial planning can help you reach your goals faster. After all, people with a financial plan have almost three times the net worth of those who don’t. That might mean they can rebound from a drawn-out divorce or buy a dream property in Mallorca three times sooner.
But getting more money in your hands doesn’t happen fast. Financial gains are gradual because time amplifies the supercharging effect of compounding. The longer you put your money to work, the more you can earn on interest. When life is busy and expensive (always), financial planning might feel more worthwhile if it paid off in real time.
What many people don’t realize is: It does. Contrary to popular belief, you don’t have to wait months, years, or decades to experience all the benefits of financial planning. Building wealth is the most obvious benefit of a financial plan, but it’s not the only one or even the most important. Here’s six overlooked ways that financial planning can change your life right away.
But first, how do I know when I need financial planning help?
Financial planning is worth it when you feel like your personal finances could get a little more personalized. There’s no age, income, or net worth that dictates when you should work with a financial planner. Instead, it’s really about knowing where you are, where you want to go, and whether or not you think you can get there on your own.
If you’re planning for a new milestone — like combining finances, starting a business, or selling a home — you’re ready for
financial planning help.
If you want to check that you’re doing the right things with your money — like saving and investing enough to reach your goals when you want to — you’re ready.
If you’re in a tough situation — maybe your divorce is official, you’re in debt, or you’re receiving an inheritance from a loved one — you’re ready.
If you’re getting serious about your future — like having kids, retiring on your own terms, or leaving a legacy — you’re ready.
You’re even ready if you’ve never learned about money or don’t currently manage finances in your life. A good financial planner wants you to succeed and will meet you where you are with experti
se and empathy. You should feel seen and heard when you work with a financial planner — never ever overlooked or judged.
What is the main benefit of financial planning?
The main benefit everyone talks about is that a financial plan puts your money where it can do the most for you. This is the strategic and technical part. It’s also your roadmap. Follow your financial plan, and you’re on the most direct route to the (almost three-times-as-wealthy) future you want.
But there’s a big benefit that’s almost always overlooked. It’s one you can start experiencing after your very first session (it doesn’t require the patience that compounding does). And it can make even more of a difference in your life than money itself.
The main benefit: Financial planning can help you feel better about your money right away.
Why is this the most beneficial thing? Because money is the number-one source of stress in women’s lives. And financial planning can help women turn money from a source of stress to a source of strength.
That transformation is incredibly significant. A 2022 Ellevest survey found that 43% of women worry about money at least once a day, and 59% do so at least once a week. This has harmful effects, both in their financial accounts and in their lives.
Money stress makes women sick.
Research has linked money worries to anxiety and depression — even inflammation, high blood pressure, headaches, and asthma. Because women earn less than men and own less than men, money stress disproportionately affects our well-being from the very start.
Money stress makes women stay silent.
Girls and women have been conditioned not to talk about money. Why would they risk reinforcing myths like women “are bad at money” during a time when it might feel … like you maybe are? In this reactive state, it’s much easier to believe society’s money lies.
Money stress keeps women from stepping into their power.
Money stress can be overwhelming. Feeling this way can make you freeze up, procrastinate, or withdraw. When you’re overwhelmed, you might not be able to see that you have financial power, and you have it right now. If you can’t see it, you can’t choose to use it.
Stressful feelings about money are real. But so are the positive feelings you can get from financial planning. A 2021 study found that people who hired a financial planner were 3x happier than those who didn’t. The same study also found that it made couples happier.
Additionally, finding the right financial planner has a particularly positive effect on women. In a 2023 Ellevest survey, 89% of women said that working with a woman financial planner would make them feel more confident about their money decisions.
Simply put, when you feel better about your money, you feel better about your life. What’s better than that?
How can financial planning help me feel better right away?
Feel relieved.
There’s no greater relief than knowing. Knowing that you’re on track to do the things you want in life. Knowing that you’re not, but then knowing what you need to do to turn it around. Financial planning puts your mind at ease by helping you see your current financial situation clearly. Pretty instantly, you’ll know exactly how you’re doing and what steps come next.Feel reassured.
Not enough women are told that they’re good with money. Because of this, we doubt and question our money decisions more than men do. Financial planning can help you trust yourself — that you already know enough to do the right things with your money. It’s surprising how talking to a financial planner can help you realize that you’re OK and you’ll be OK.Feel supported.
It’s never a bad thing for a woman to step into her financial power. But she shouldn’t have to do that alone. Since financial health is closely linked to physical and mental health, women can think of financial planners like their doctors: someone who helps them expertly take care of their health. Regular check-ins, preventive care, urgent care — it’s all there.Feel in control.
When you feel like your money is controlling you, financial planning can help you take back control of your money — and give you an actionable plan for how to do it right away. It can also help you take control of your life by preparing to avoid negative financial surprises in the future. “I need how much for a downpayment!?” becomes “I’m 80% to my homebuying savings goal.”Feel more like you.
Knowing offers relief. Knowing why offers clarity on what matters most to you. Financial planning can help you prioritize money moves that reflect your needs, goals, and values. When a financial plan considers all of you, it can make your very next purchases and investments feel more intentional, and every trade-off feel easier.Feel confident.
Getting hands-on with your finances can be scary. But the #1 driver of confidence in women is taking action with their money. Financial planning helps stop the cycle of “what ifs” and shows — for certain — that your money is working hard for you.
We believe women deserve to feel good about their finances. Our all-women team of financial planners and advisors want that for you, too. So they do things differently: They meet you where you are with expertise and empathy. They listen to what’s important to you, recognize your unique reality, and support your goals. With this level of care, you can plan confidently and live confidently.
Book a complimentary consultation with an Ellevest financial expert to start today.
© 2024 Ellevest, Inc. All Rights Reserved.
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The information provided should not be relied upon as investment advice or recommendations, does not constitute a solicitation to buy or sell securities, and should not be considered specific legal, investment, or tax advice.
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Ellevest, Inc. is an SEC-registered investment adviser. Ellevest fees and additional information can be found at www.ellevest.com.
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Ellevest Team
Ellevest helps women build and manage their wealth through goal-based investing, financial planning, and wealth management. Our mission is to get more money in the hands of women.