Financial Planning Is Not Just For The Future
When most people think about financial planning you immediately think about planning for the future, but what about the present?
Planning for now or the future?
There is no denying that planning for the future is essential. However, it is also imperative that you do not misjudge the value of planning for now.
Planning, for now, can make your current situation better which in turn can secure your future.
So why is financial planning important?
Financial planning can help improve your financial health as well as help you achieve long and short term goals. Financial planning can significantly improve your –
• Income – careful planning can not only help you organize how to spend your income, but it can also help you identify and cut out waste which will boost your cash flow
• Savings – your increase in cash flow can be used to boost your savings which can help you achieve goals or prepare for unexpected circumstances
• Capital – increased cash flow can also contribute to an increase in your capital
• Investments – Financial planning can help you gain a better understanding of your financial circumstances, with this in mind you can make better investment choices
• Assets – having assets can be rewarding, but they can also become a burden, it’s important that your assets help boost your financial health
• Standard of living – a boost to your income can significantly improve your life, by enhancing your disposable income you are creating more economic opportunities
• Family security – increasing your savings, making smart investments, looking after your capital and assets, will help you keep your families future safe, it’s also worth looking at insurance policies which, along with savings, can also help during times of unexpected circumstances
The list above makes it clear, how by looking after the now (income) you can start building up to take care of your future (family security).
How to plan for now
Financial planning does not have to be an overwhelming and complicated process; it will, however, be an incredibly rewarding exercise.
Creating your personal financial plan is possible–
• Creating a budget and making note of what money you have coming in and what you spend
• What are your financial goals? It is important to come up with specific goals which are realistic; we would all love to be billionaires with our island and private jet, but this is not a realistic goal for the majority of us
• It is important to set up safety nets to prepare for events such as accidents/ ill health/ or death as well as things such as damage, loss, and theft – insurance policies and healthy savings will help protect you and your family
• Keep a close eye on your credit report; a quick credit check will give you a good picture of your financial health
• Keep on top of your financial plan; there may need to be adjustments or if you reach your goals you can then plan your next steps, ensuring sound financial health is an ongoing commitment
However, if you prefer then you can contact a financial planner, and they can go through your finances with you and create a financial plan for you.