In the spring of 2019, I planned a trip to Iceland, England, and Spain.
To plan a trip, I always start with creating a google doc denoting the flight times, lodging, rental car, and what to do. This is not a comprehensive schedule, I like to say this is the bones of the plan.
Just like a financial plan, this trip had challenges.
The first challenge, Iceland Air went into bankruptcy a couple of weeks before the flight, as a result, canceled the flight. Luckily, we were able to use my fiancee’s airline points to book another flight through American Airlines. Problem solved.
I repeat NEVER do this.
Typically this is the only form of identification airlines use to allow you on to international flights (this includes back to the US). After searching all my past locations without any luck, I concluded it was lost forever. How was I going to make my flight that day to Barcelona without a passport?
I asked around at the various check-in counters at the airport to see if I could fly without a passport. One airline would allow it – Norweigan Air would let me fly to Madrid. My traveling companion would go ahead and make the scheduled flight to Barcelona. I would have to wait until the next day and take the flight to Madrid. This meant I would need to take a 4-hour high-speed train from Madrid to Barcelona and ask for a 14-day passport at the American Consulate.
The situation changed, so my plan had to change.
When Should You Change Your Financial Plan?
“By Failing to prepare, you are preparing to fail.” – Benjamin Franklin
A loss of a job, a major health expense, a new child, or a big inheritance may come your way. Change can be positive or negative, but change is inevitable.
It is important to have a financial plan and check it regularly — at least annually. At a minimum, you should update:
- Your Personal Balance Sheet
- Short, Mid, and Long term goals
- Appropriate Amount of Protection Against Risk (Insurance)
- Estate Planning documents
A good financial planner can help you with these tasks, as well as help lower your taxes, manage IRAs, analyze equity compensation, and simplify your personal finances.