One thing that often prevents us from being proactive with our family financial planning is that we perceive financial planning to be too complex. The unlimited alternatives for spending our money often results in “analysis paralysis.” The good News is that in the short term, there are basically only five spending objectives; in the long term there are only six. Every spending decision or use of money accomplishes one of these 11 objectives. We’ll focus on the five short term spending objectives in this article, and we will take a look at six long term objectives next month.
Every short term spending decision will fit into one of the following five categories: