Why is it important or relevant?
The fact of the matter is financial planning is an act of maturity. It is about recognizing
responsibilities as you move from one stage of life to another: about becoming independent and
being able to achieve personal objectives; attaining life goals and being able to be productive
member of society. This ultimately allows everyone to enjoy better living standards. Recognizing
that life is uncertain, and being proactive about mitigating the challenges that arise from it, is what
makes financial planning relevant. It spurs you into thinking about how to cope with different life
events that could be life-changing or life-threatening.
When should it be done?
Of course, all this is easier said than done. We may feel that ‘now is not the time’ or that we are
not in the optimum position to manage our finances – or that we may not have anything to manage
at all, but situations, especially financial situations are fluid and dynamic. They rarely stay at just
one level for long.
Although there is every possibility that our financial positions may deteriorate, this is more likely
to happen if we stand idly by and let ourselves be overcome by fear, ignorance or inertia. Taking
a proactive stance where our finances are concerned is the first indication that we want to
empower ourselves. The earlier we start our financial planning, the better we will become at it.
What we need to remember is that a financial plan is always personal and exclusive to the
individual. It is relevant and applicable to the person who will be using it. Financial planning
therefore, needs to be customizable. At its core, it should help you meet your financial life goals,
whether this means buying a home, paying off debt like education, business or vehicles loans,
saving for early retirement, or just planning for uncertainty in general, and being able to live
comfortably in one’s twilight years, some things must be seriously considered, such as providing
for declining health, or ‘big ticket’ items that suddenly need to be replaced, like the family car or
washing machine.
How do you plan financially?
Some people are good savers. Regardless of how little that earns, they manage to put aside a bit
every month. More importantly, they possess the discipline not to utilize these funds unless
necessary. For those who have trouble sticking to their budget, the way financial planning is
structured is a boon. Properly applied, it will tell you in no uncertain you need to do, to get where
you want to be. Make no mistake; for some, financial planning is a hard – necessary – dose of
reality. it can be painful sometimes to realize how much more we must do, to secure our future.
But it also widens our horizons, increases our knowledge, and demonstrates that it is in our power
to improve our lives. it does this by providing advice on savings, investments, and how to decrease
debt. it also helps you work with what you have, and offers solutions that can help protect your
income, family and assets. Financial planning is for the long term it is a journey, not a one-off
process or tick-the-box exercise. It is about starting from where you are, and learning to create
strategies and value that will carry you through life, keep you on your track for achieving your
goals, and give you piece of mind in your golden years.
How to get the guidebook "My Money and Me Guide"?
