How Financial Planning Can Change Your Life
Everyone has a dream that they wish can come true, maybe you want to travel or start your own business. Have you ever considered that these dreams could come true?
What exactly is a financial plan?
In simple terms, a financial plan is an assessment of an individuals (or business) financial situation. The overall goal of a financial plan is to ensure that an individual’s finances are in order and any long term or short term goals are achievable.
Do I really need one?
Whilst a financial plan is not compulsory, it is an extremely useful tool. A financial plan can help you to keep your finances in order or save up for a home. A financial plan can also help you plan for a retirement or unexpected circumstances such as accidents or illness.
Some people are able to create financial plans without actually creating a financial plan. These people are just naturally organised and financially savvy. However, most of us find it helpful to have something in front of us in black and white.
What are the benefits of financial planning?
These are just a few of the benefits-
- Peace of mind – the physical and mental benefits of having your finances under control are invaluable, financial stress is a growing problem due to the rise of low incomes and high prices
- Helping your children – the future is a huge concern for parents, it’s only natural that you will worry about how your children will afford university or a house
- Tipping the balance – most people find that their income isn’t enough to cover their outgoings, by creating and following a financial plan you can tip that balance in your favour
- Enjoy your money – once the bills have been paid, you have money put aside, and your families’ future security is taken care of. You can finally start enjoying your hard earned money
- Live the dream – you can finally go on that cruise or go to college and get your dream job
How do I go about making a financial plan?
There are numerous resources and companies offering financial planning, some for free and some for a cost.
MyMoneyPlatform offers a free tool which makes planning your finances quick and simple. Making a financial plan doesn’t have to be difficult; all you need to do input your details into the software. Once you have done that then all your need to do is sit back and relax.
Stop dreaming and start living
Whilst some dreams may really be unattainable, not all dreams are. A financial plan can help you sort your finances and allow you to start setting realistic goals.
You may not be able to save up for a 10 bedroom mansion with a private cinema and a swimming pool. You could however afford to save up for a home with enough room for your family to live comfortably.
Finances do not need to be boring, or scary, or difficult. Finances can be used to improve your circumstances and assist you in getting the most out of life.