When Is the Right Time to Start Financial Planning?

You are scrolling through your phone and see another article about rising costs, market uncertainty, or friends your age already thinking about retirement. Maybe part of you feels behind. Maybe another part thinks you should wait until your income increases, your debt decreases, or life feels more stable.

Here is something reassuring. Very few people feel completely ready when they begin planning. The Financial Planning Association notes that a significant portion of Americans do not have a written financial plan at all. This means many people make important financial decisions without a clear structure, regardless of age, background, or income level.

Every financial journey is different. But one principle consistently shows up: starting earlier often provides more flexibility over time. Even so, beginning later is not a disadvantage. It simply means your strategy may look different, and that is completely valid. Financial planning can support clarity and confidence at any stage.

A key idea in financial planning is that growth can build on itself over time. This is the concept often referred to as compound growth. When you begin earlier, there is simply more time for your contributions and potential gains to build upon one another.

Rather than focusing on specific numbers, think of it this way. Two people can save or invest the same amount over their lifetimes but begin at different moments. The person who starts earlier may see more long term growth simply because their timeline is longer. However, the person who begins later can still benefit from consistent, structured planning and intentional decision making.

The real takeaway is not about the math. It is about the value of time, consistency, and a plan that reflects your personal situation.

How Life Stages Shape Your Financial Priorities

Your financial needs shift naturally over time. While every individual is different, these patterns can help you understand common priorities.

• Early Career: This stage often focuses on building initial stability. Many people begin creating budgeting habits, exploring workplace benefits, and setting aside resources for unexpected expenses.

• Established Career: As responsibilities grow, priorities may include planning for housing, managing family related costs, and increasing longer term savings as income becomes more predictable.

• Mid Career: These years often involve refining long term goals, maximizing available retirement options, and exploring tax informed strategies. People may begin thinking more intentionally about future lifestyle choices.

• Later Career and Pre Retirement: At this stage, individuals often shift toward wealth preservation, understanding how future withdrawals may work, and planning for legacy and estate considerations.

None of these stages have strict boundaries. Many people move through them at their own pace. What matters most is identifying what feels relevant for you right now.

Common Misconceptions That Can Delay Getting Started

Even motivated individuals can feel uncertain about when to begin. These misconceptions show up often.

"I need a higher income first"
Many young adults believe that planning is only for those with high income. Research consistently shows that sustainable financial habits can matter more over time than starting amounts. Small, consistent actions can create meaningful progress.

"I am too young to think about this"
Some people feel that planning is only for later in life. In reality, early habits can simplify future decisions. You do not need to have everything figured out. You simply need a starting point.

"I should wait until my debt is gone"
Debt, especially from education or essential expenses, is common. A financial plan can help balance debt repayment with other long term goals. The right balance varies significantly from person to person.

A Simple 90 Day Framework to Begin

You do not need to overhaul your entire financial life at once. A three month approach can make the process feel more structured and less overwhelming.

• Days 1 to 14: Take Inventory: Review your income, spending, savings, and obligations. This creates the foundation for informed decision making.

• Days 15 to 30: Strengthen Stability: Focus on setting aside resources for unexpected expenses. Even a modest amount can provide meaningful reassurance and reduce financial stress.

• Days 31 to 60: Review Workplace Benefits: If available, explore employer retirement plans, contribution options, and any matching policies. Understanding these benefits can support long term planning.

• Days 61 to 90: Automate Your Systems: Consider setting up or adjusting automatic contributions to saving and investment accounts. Automation supports consistency and helps reduce emotional decision making.

Some people enjoy managing their own financial planning. Others prefer guidance when navigating important life transitions, tax related questions, major decisions, or multiple goals at once. A qualified professional can help you clarify priorities and evaluate different paths with confidence.

For more than five decades, Siebert has helped individuals and families bring structure and clarity to their financial decisions. Whether you are beginning for the first time or refining an existing plan, a financial professional can help you think through your goals, your comfort level, and your options.

If you would like support as you begin or update your financial plan, contact us and talk with our Wealth Managers to explore strategies aligned with your situation.

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References

Financial Planning Association - 2024 Financial Planning Landscape Research
(https://www.financialplanningassociation.org/press-room/releases-announcements/2024-financial-planning-landscape-research)
Charles Schwab - 2024 Modern Wealth Survey
(https://pressroom.aboutschwab.com/press-releases/press-release/2024/2024-Schwab-Modern-Wealth-Survey-Shows-Increasing-Financial-Confidence-From-Generation-to-Generation-and-Younger-Americans-Investing-at-an-Earlier-Age/default.aspx)
TIAA Institute - Gen Z Retirement Savings Study 2024
(https://www.tiaa.org/public/about-tiaa/news-press/press-releases/2024/10-14)