The Importance of Financial Planning
The Importance of Financial Planning
Nobody can fulfill their financial planning only by working and savings. They can work hard, spend a little to save a lot (or they thought they were) while inflation is going to eat their nest eggs money. Moreover, medical expenses have gone through the roof as well as the increasing cost of college education.
What can you do to solve these problems? What is your Plan B? All of us should take deep breath thinking about this matter.
Work hard like a horse? Marry a rich spouse? Or try to keep your healthy lifestyle (eat well, sleep well) with the hope that you never get a serious disease? Is your plan going to take you through a comfortable retirement without worrying about financial matters? Remember inflation is still eroding your money in the golden years.
In this case, what you need is a sound financial plan. You cannot invest your money only by following your heart or what people or newspapers say. You need to have your own financial plan that suits your needs.
Here are some aspects you have to consider before you make your financial planning:
- How old are you now? Are you single or married?
- How many children do you have or do you plan to have?
- Are you planning to send your kids to college?
- At what age are you planning to retire? At your retirement, how much money do you need to live as comfortable as during your pre-retirement?
Above questions might sound simple but take serious considerations. You feel good to continue your current lifestyle as long as you are happy. Are you planning to be happy just for today and tomorrow? How about later?
I believe, there will be some detailed aspects that only you are able to analyze on your own in building Financial Planning.
By acknowledging what you want and how much it is going to cost you, have you reached your GOALS? Can you afford it? Congratulations if you do. If you do not, please do not panic. There is still time. What you need to do now is to figure out your Financial Plan B, Your Revised Retirement Plan.
One way to achieve independence is to prepare for everything in advance.
