Synergy in Financial Planning

Synergy has become a popular term these days.  As you might expect, the concept of synergy also applies to financial planning. As a comprehensive fee-only financial advisor, I see the benefits in my clients’ progress because of synergic effects.

Synergy in financial planning can only be achieved through connectivity. Think in terms of Sir Isaac Newton’s Third Law: every action has an equal and opposite reaction. Every personal finance move or decision creates a reaction in another area of your financial life. The key is to create positive reactions and not negative reactions.

For example, buying a home that is too expensive will create negative synergy to your cash flow. It will create a scenario that will produce a negative snowball of reactions that can lead to saving less for retirement, a negative cash flow, and possibly bankruptcy.

While negative synergy can create a downward spiral, positive financial synergy can spur tremendous financial growth. An example we can all relate to is saving for retirement.

To learn more about positive synergy as it relates to financial planning, click here.