Navigating through life without a financial plan is like going on a long road trip without a map. A financial plan looks at where you are today and where you want to go. Then it sets out all the steps you need to take to get there. A financial plan helps you be well-organised, stay on track and helps you to achieve your plans and dreams.
Benefits Of Financial Planning
- A financial plan helps you construct your priorities and design the lifestyle that you desire.
- You will be able to manage your financial affairs having an understanding of money.
- By sticking to your plan you can avoid excessive spending and unmanageable debts.
- You will have a sense of freedom from financial worries that come from lack of planning.
- You will be more effective in building, using and protecting your wealth throughout your life.
“He who fails to plan is planning to fail”
Winston Churchill (During World War II)
Five Dangers Of Not Having A Financial Plan:
- You might approach retirement age and realise you don’t have enough money to stop working.
- You may be able to get want you want today but not be able to afford what you need in a few years from now. For example you might not be able to afford your children’s education expenses, a new house, that overseas holiday or a new car.
- You will likely have more worries about money because you don’t have a plan in place to provide you with peace of mind.
- You may not achieve any of your goals because you don’t have any plans in place to achieve them.
- An unexpected event may lead to you suffering major financial expenses or financial loss that could have been avoided if you had the right protection strategies in place.