When it comes to handling personal finances, many households don’t have a clear view on how to reach their goals. This is according to the 2013 Household Financial Planning Survey and Index, a financial planning study conducted by the Certified Financial Planner Board of Standards and the Consumer Federation of America. The study awarded consumer points for specific financial behaviors that fell into three categories, namely comprehensive planning, basic planning, and credit card debt management. The result shows Americans falling into four groups: the comprehensive planners, the basic planners, limited planners, and the non-planners.
To help you better understand each group and to know your “money mindset”, AOG Wealth Management, an experienced group of financial advisors in Northern Virginia, provides insight on each group:
If you want your personal finances to be in great shape, you should strive to be a Comprehensive Planner. Only 19% of Americans fall into this group. Comprehensive Planners are perfectionists and know the exact route to all their financial goals, which include their household budget, retirement savings, and insurance. To be a Comprehensive Planner, you can either map out everything yourself or hire a reliable financial advisor like AOG Wealth Management to help chart your path and provide guidance along the way.
A big portion —a whopping 38%—of the American population falls into the Basic Planner group. This group has a goal but do not know exactly how to get there. You can clearly see this because two-thirds of Basic Planners have a household budget and less than half keeps a record of it. Although 35% of Basic Planners have a comprehensive plan, 31% of them are more likely to carry on with the plan the next year.
About 33% of Americans are Limited Planners. They are mostly procrastinators when it comes to planning their finances. This means that they have a budget or a plan, yet decided not to do anything about it. 31% of Limited Planners have retirement plans, only 7% save for emergencies.
Non-planners are float from paycheck to paycheck, bill to bill without any strategic approach in managing their finances. 90% have no specific saving goals and plans and 40% have outstanding credit card debt.
To make sure your finances are headed on the right direction, get in touch with our financial advisors at AOG Wealth Management. As wealth management professionals, serving Metro DC and Northern Virginia including Vienna, Ashburn, Great Falls, Reston, we can help you determine your good and bad financial habits and put you on the path to achieving you financial goals.
To learn more about our company and our services, contact us for a complimentary financial consultation.