Benefits to Financial Planning

It was John Lennon who wrote “Life is what happens to you while you’re busy making other plans”. Many people are so busy planning their holidays, their next outing or just getting by in life that they forget about planning for their future. And they do not understand the benefits to financial planning.Sound financial planning brings about financial security. Without a plan the tendency is to drift through life, perhaps even lurching from crisis to crisis. It may be that you live life in a constant state of worry about the future and have no idea that life can be better.Every aspect of our life is affected by finance in some way. Planning means that if the unexpected happens there is some preparedness to help avoid long-term financial stress. Emergencies can cause financial hardship when you are not prepared and a sound financial plan will include strategies to cope.Having a plan in place helps you to save through budgeting. A big part financial planning is having a budget. A budget will help you to keep track of your expenses and show where to make adjustments to cut down on unnecessary spending. It will help you to distinguish between needs and wants, and show what you can afford and what you must save for.Budgeting will help you to exercise more efficient control of your money.Not only does a budget help control spending habits it can help you to eliminate your debts. By understanding what you need to do and where your income comes from you can chip away at your debt.Financial planning gives you the benefit of achieving your goals. Whether you want to save for a new home, a comfortable retirement, or education for you and your family these will be included in your plan. Strategies are devised to help you achieve the goals you set. Saving is made bearing in mind your goals, risk profile and time frame.Many planners include insurance strategies in their plans. To my mind this should be part of everyone’s plan as if the unexpected happens and you become ill or disabled your whole plan could be in jeopardy.Estate planning will ensure that your assets are distributed the way that you intend. Financial planners will always recommend you have a will and that your estate is in order.Planning allows you to control your finances and your life. It gives you peace of mind and financial freedom. Sound planning strategies help you to cope even in the toughest of financial situations. These are only some of the benefits to financial planning.

This entry was posted in Uncategorized and tagged , . Bookmark the permalink.