Life Stages: Make Financial Dreams Come True

From newlyweds and college graduates to new parents and retirees, we all have our own financial dreams. They comfort us and give us hope, and they need our work and focus to become a reality. Here's a simple step-by-step guide to help you on that path, regardless of which stage of life you're in.

Step 1: Articulate Your Dreams
Everyone has busy schedules and can struggle with defining their financial dreams. It's critical to take a step back and articulate them. If you're getting married, are you considering having children? If you're close to retirement, are you wondering where you'd like to spend your golden years? It's imperative that you define them and complete the picture as clearly as you can. Spend some time bullet-pointing your dreams - Where and how would you like to spend your annual vacation? Do you want to retire in the sun of Florida or the mountains of Vermont?

Step 2: Dreams Need Monetizing
Once you've articulated your dreams, the next step is to figure out how much they'll cost to achieve. Remember, dreams will almost always have a dollar value attached to them. Think of all the possible financial implications that may come with your dreams. For example, having children might imply moving to a larger home, arranging for their education and more. Choosing a retirement spot implies the costs of buying a property, the expenses of relocation, utilities and insurance, and enough funds to last your entire retirement.

Step 3: Build Your Dreams in Your Budget
Now that you have a realistic idea of how much it'll cost to achieve your dreams, it's time to look at your current finances and create a budgeting plan. It's important to "break down" the value of your dreams by creating monthly or quarterly financial goals. Buying a retirement home might be expensive, but if you start early enough - and plan realistically - you'll be able to define just how much you need to put aside on a frequent basis. You also need to consider factors like your desired timeline, current income, and spending patterns. A good budget helps you understand how you might need to increase your income and identify potential areas of saving. For more tips on budgeting, visit our Budgeting Planning Guide.

Step 4: Work to Make Them Real
Defining a clear, realistic goal means you've won half the battle. Now, you need to work towards making them a reality. Every day counts, so remind yourself about your saving plan on a frequent basis. Analyze your portfolio and see if it will meet your needs - is your allocation tuned to your dreams? Make sure you revisit your plan, budget and allocation every quarter to make sure you're still on track.

Dreams Within Your Grasp
As we shift from stage to stage in life, our needs and goals can change. Our Planning Guides provide helpful tips for all of life's stages. They offer a range of articles, worksheets and calculators to help your financial dreams come true. It's never too late to start - visit our Planning Guides now.

This newsletter does not constitute legal, accounting, tax or other professional advice. We recommend you contact your own legal, accounting, tax or professional advisor as neither Wachovia nor the publisher assumes responsibility for your relying on the information provided.