With the economy nearing the end of an expansionary period (which is now the longest in the nations history) its important to prepare your finances for a potential downturn. That means accessing your "Savings Buffer" which is a cash savings buffer in the event of an emergency. With more and more American's struggling to even pay there bills this can be hard to achieve but very necessary particularly when there are dual incomes in a household. If one of them gets laid off it can put a very real strain on daily finances. Thus, we recommend creating a savings buffer of some sort of at least 6 months to cover daily living expenses. It not only involves savings but also cutting back in expenses as well and staying disciplined in doing so. A financial plan enforces an agreed upon method between an advisor and a client who lacks such discipline. It also creates the "bad guy" as the advisor acts as the enforcer of the plan vs a spouse. Managing finances especially frugally can create friction in couples as we all know.
At Brecken Capital Advisors we create in-depth financial plans for our clients business and personal finances to find ways not only to save but to improve the overall cash flow of households.
For more insights see our website and disclosures found there at BCA.