3 lesser-known tips for financial success.

New York Life | September 17, 2024

The power of financial planning can be unlocked for everyone, regardless of income, net worth, age, or goals. Financial Planning Month is approaching in October, and after that, the New Year will be right around the corner. Now is a great time to take stock of your financial journey in 2024 thus far, refocus on goals for the remainder of the year, and begin to plan for 2025.

A lot of financial success comes down to consistently practicing tried-and-true basics for a long time. But that doesn't mean there isn't anything new to learn! Follow these lesser-known financial planning tips to work toward a more financially secure future.

1. Life comes with built-in financial milestones. Use them to create your financial plan.

Not sure where to start with your financial plan, or feeling like your existing strategy needs a refresh? Forget money for a second and take a look at the life milestones that you have coming up on the horizon--whether they be next year, in a few years, or even further down the road (like retirement). It's never too early to start planning to support yourself financially through life's biggest events. Our Wealth Watch Survey found that 62% of adults thought they were financially prepared to navigate their life milestones like getting married, having children, making career changes, or paying for education, but were not; and 39% of people say they wish they had sought help when financially navigating life events. Reflecting on your upcoming life milestones can be an exciting exercise that reframes the financial planning conversation and reignites your and your family's commitment to work toward your goals.

2. Expect the expected. In other words, there is no such thing as an unexpected event when you plan right.

Our research found that despite the frequent occurrence of "unplanned" life events, people who have experienced the following life events report on average feeling very prepared for purchasing a home (45%), getting married (43%), growing their family (35%), and starting a business (34%); and least likely to feel prepared for divorcing or separating (18%), losing a loved one (15%), falling ill and requiring medical care (14%), and being impacted by layoffs (12%). Retirement falls into the middle, at 30%.

Every life event has financial implications--even the ones that feel unexpected. Life events like the death of a loved one, becoming a caregiver for a loved one or needing care yourself, or experiencing a divorce are the last things we want to think about now--but they are all too common. For example, someone aged 65 or older has an almost 70% chance of needing long-term care, according to 2020 figures from the Administration for Community Living. Not only can planning ahead help to ensure you are not drowning in financial confusion and stress during a time when emotions are high and there are a million other priorities to focus on, but working with a financial professional can "outsource" much of the financial concerns during this type of event, enabling you to focus on the emotional and logistical aspects that need your care and attention.

3. Lean into your available resources.

Financial planning can feel daunting, but you don't have to do it alone. Our research found the top sources where adults report getting help to manage their finances while navigating a life event are friends and family (62%), financial professionals (32%), and internet searches (26%). After friends and family, which all generations reported as their top source for support, Gen Zers were most likely to use social media for guidance (32%), millennials (39%) and Gen Xers (24%) preferred internet searches, and baby boomers (49%) were most likely to turn to financial professionals.

After taking stock of the life events you have coming up, as well as the unplanned events that you should be prepared for, the next step is to take stock of the supportive resources you already have at your disposal. In addition to the sources of information where most people are likely to turn, workplace benefits can be a great resource, providing access to financial planning information and professionals, coaching, and bereavement support. You probably have more resources at your disposal than you realize.

“No two journeys through life are the same. But one thing is certain: we all experience major life events, both planned and unplanned, and those events come with financial impacts,” said Jessica Ruggles, corporate vice president of Financial Wellness at New York Life. “Preparedness is key. Our data shows that working with a financial professional helps people feel more prepared and can lead to better financial outcomes: 53% of people who work with a financial professional felt financially prepared for their major life events, versus 33% of those who don’t.”

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