Pursuing your financial goals isn’t about reaching a single endpoint—it’s about committing to steady progress along a path that’s often unpredictable. The road to financial success is rarely a straight line; it’s filled with unexpected turns, challenges, and opportunities. Your financial plan should act as your GPS, guiding you forward in the right direction while adapting to changes along the way.
Yet, people often mistakenly view a financial plan as a one-time, set-it-and-forget-it solution. In reality, it should be a living, breathing framework—designed to grow and adapt alongside you through the many stages of life.
Below, we’re exploring practical strategies for navigating your financial journey with confidence, staying flexible, and maintaining progress toward your long-term goals—like a comfortable retirement or financial independence.
First, Flexibility Is Key
You may have heard the old saying, “The only constant in life is change.”
Think about where you were three months ago, three years ago, or even a decade ago. Chances are, your goals, ambitions, and circumstances have shifted significantly. As you move through different stages of life, you inherently change—and eventually, your financial priorities, needs, and goals may change as well.
And it’s not just personal changes that matter—broader economic shifts can profoundly impact your financial life, too. The stock market, for example, is inherently cyclical, experiencing cycles of highs and lows with periods of volatility in between. During these moments, it’s tempting to make reactive decisions. But staying focused on your long-term objectives—and not the market’s short-term swings—is essential. A well-crafted financial plan serves as your anchor, helping you weather uncertainty without losing sight of your progress.
Of course, life itself can bring unexpected twists. Events like getting married, having children, starting a business, or even facing challenges like a medical diagnosis or a job relocation introduce new priorities that reshape your financial picture.
This is why flexibility is essential. A strong financial plan can adapt to address these changes and keep your goals in sight, no matter what life throws your way.
Check-In with Your Finances Regularly
Because of the ever-changing nature of your finances, regular check-ins help you stay aligned with your goals and adapt to new circumstances. Without them, you might unknowingly drift off course, putting your financial progress at risk.
In terms of your financial life, this could mean:
- Missing out on key investment opportunities
- Falling short of long-term savings goals (like retiring)
- Overlooking steps to protect your family or estate
- Paying more than necessary in taxes
- Accruing high-interest debt
- Exposing too much (or too little) of your portfolio to risk
Rather than let your finances get carried away like a runaway train, regular check-ins help you stay in control, assess your progress, set guardrails, and make proactive adjustments to keep moving toward your goals.
When conducting a financial check-in, be sure to review important pieces of your financial life, including:
- Your Goals: Have your priorities shifted? Or has your goal number or timeline changed? Reflect on whether your current actions are keeping your goals front and center.
- Your Savings Progress: Check how you’re tracking toward both short- and medium-term goals, such as building an emergency fund or saving for your child’s education, as well as long-term objectives like retirement.
- Your Budget: Review your spending and saving habits from the past few months. Does your spending align with your values, goals, and priorities? Remember, even small changes in income or expenses can have a big impact over time.
While an annual or semi-annual review is usually sufficient, a significant life event—like marriage, divorce, welcoming a child or grandchild, or experiencing a loss—may warrant more frequent check-ins. These reviews are not just about recalibrating your financial plan; they’re also an opportunity to celebrate the progress you’ve made and recognize how far you’ve come on your journey.
Rebalance Your Portfolio
Over time, the performance of individual assets within your portfolio tends to shift your overall allocation, potentially increasing risk or misaligning with your goals. Even if your portfolio was initially built with the proper mix of asset classes (for example, 60% stocks and 40% bonds), market fluctuations can cause these percentages to drift.
For example, let’s say your stock holdings performed exceptionally well last year. While growth is exciting, this imbalance could leave you exposed to more risk than is suitable for your financial circumstances and goals.
This is where rebalancing comes into play. Think of it as a critical pit stop on your financial journey. Just like a road trip, you occasionally need to pull over, check the map, and make sure you’re still headed in the right direction. Rebalancing helps keep your portfolio on track, realigning it with your risk tolerance and long-term strategy so you can continue moving steadily toward your destination.
Since rebalancing involves decisions about asset allocation, diversification, and even potential tax implications, it’s often beneficial to work with a financial advisor. They can guide you through this process and help you make well-informed adjustments to keep your portfolio aligned with your overall financial plan.
Create (or Boost) Your Emergency Fund
Did you know that only about 53% of adults have enough savings to cover three months’ worth of expenses? [1] If you haven’t yet set aside dedicated savings for unexpected expenses (medical bills, car repairs, house repairs, or a sudden job layoff), consider making this a top financial priority.
While the exact amount will vary depending on your circumstances, a good rule of thumb is to save between three to six months’ worth of essential expenses. However, factors like your family situation and job security may call for adjustments:
- If you’re self-employed or work in a career with unpredictable income or the risk of sudden unemployment (like start-ups), consider saving closer to a year’s worth of expenses to account for potential income fluctuations.
- If you have children or dependents, you might need a larger cushion to cover unexpected costs.
- If both you and your spouse have steady incomes, you may feel comfortable with a smaller fund—around three months’ worth of expenses.
Keep in mind that setting too much cash aside in a low-earning savings account can mean missing out on opportunities for growth. A financial advisor can help you determine the right balance to maintain security while still working toward your long-term financial goals.
Remember, You Don’t Have to Go It Alone
Your road to reaching your financial goals is rarely straightforward, but with a trusted guide by your side, it can certainly feel less daunting. But with a well-crafted financial plan, navigating the twists and turns becomes far more manageable.
As you move forward, remember the importance of staying flexible, regularly checking in on your progress, and adapting your plan as your circumstances and priorities evolve. These small, consistent actions help ensure you remain on a path that aligns with your goals and needs.
If you’re ready to take the next step, our team is here to help. Schedule a time to connect with us today, and let’s work together to create a strategy that supports your long-term financial success.
Kevin Stoddard, CFA® is the founder and president of Stoddard Financial, LLC. He holds the designation of Chartered Financial Analyst® (CFA®) and is a veteran in the financial services business with over three decades of experience. In 2004, Kevin founded Stoddard Financial, LLC. to help clients use their company benefits to improve their financial situation and leverage those and other assets to pursue and manage financial independence. Using his in-depth knowledge of portfolio management, he helps people transition from building wealth to using that wealth in seeking to create income and recognize what that looks like from an asset, income, and tax perspective.
The opinions expressed in this material are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security, investment, or other financial product.
This material has been prepared in collaboration with Crystal Marketing Solutions, LLC, and has been edited with the assistance of artificial intelligence tools. The information presented is based on sources believed to be reliable and accurate at the time of publication. This material is for educational purposes only and does not necessarily reflect the views of the author, presenter, or affiliated organizations. It should not be construed as investment, tax, legal, or other professional advice. Always consult a qualified professional regarding your specific situation before making any decisions.