Do you worry about money? About how you will sustain your wealth or your family’s financial future? Financial stress is cited as one of life’s major concerns, certain to keep you up at night, especially if you don’t know what the future holds.
Here are 5 key reasons to have a financial plan in place:
1. It will help you save
While you might know that you need to put aside some money every month for savings, you might not do so or you might not save the same amount every month, waiting to see what you have left over (if anything) after covering all your expenses. Saving is essential to fulfilling your long-term goals and should be a primary part of your financial plan. With a plan in place, you will know how much you need to save and when, and commit yourself to doing so.
2. And it will help you to invest
Investment works on the same principle as saving – if you want to grow your wealth, you need to invest it wisely and on a regular basis to see results. And, unless you are a financial expert, you will need help doing so.
3. It will prepare you for the accidental and the inevitable
Do you have disability insurance? Life insurance? What about a will? No one wants to think about falling ill, having an accident, or dying. However, the truth is that these are concerns you must deal with if you want to protect your family and their future. Insurance and estate planning are important parts of any serious financial plan. Once these are in place, you will find your stress will greatly reduce as you feel secure in the knowledge that you and your family are properly protected.
4. It saves precious time
No amount of money can stop time. And, due to the power of compound interest, the sooner you start managing your finances properly, the better for your financial health. A structured financial plan will help you to clearly define your goals and make decisions about how you will protect and grow your wealth. This will save you time and effort, especially if you work with an experienced financial adviser who can assess your needs and design a plan to suit them.
5. If you don’t know where you’re going, you might never get there
Much like an annual road trip, financial planning is an ongoing process, and one you need to repeat on a regular basis to ensure that your plan is up to speed with your financial situation. Where do you want to be in 5, 10, 20 years’ time and what do you need to do to get there? Need help finding the answers?
Take action to determine the state of your finances as well as your financial goals by working with a reputable financial adviser who understands that your life requires a unique financial plan.
It is said that if you fail to plan, you plan to fail. When it comes to your finances, it’s best to have a plan in place (including short-term and long-term goals) to ensure that your wealth is protected.