Would you like to have more control over your financial life but do not know where to start? Or do you have no real sense of the potentialities and need to plan your finances? In this first article we will explore, what is financial planning for individuals, their role in our lives and what are the reasons and benefits to do so.
What is financial planning?
Financial planning is a key road map to help you reach your financial goals, whatever they are (moving from one home to another, giving your children a good education, or being able to retire sooner than planned).
What is the role of financial planning in your life?
Financial planning is a tool that allows you to increase the likelihood of success in pursuing your goals.
Since we are all different and have different goals / aspirations, financial planning is also different from person to person. A personalized plan will help you get closer to your goals in a more efficient way. Keep in mind that correct planning allows you to accumulate, on average, a higher equity in more than two times in the absence of planning.
Why do financial planning?
- It requires setting goals and priorities and making quantitative and qualitative decisions about your money.
- It requires detailed analysis of where your money is going and that you begin to allocate it where it makes more sense, rather than ramble on to where it disappears every month.
- You will be able to control your components and in that framework benefit greatly in the long term, namely with higher levels of savings and significant investment plans, planning your retirement, preparing for your children’s college, being more efficient in terms of tax management and asset planning and insurance.
Careful financial planning can help you scale your individual situation, calculate what you need for retirement, analyze sources of income and means of investment, and work out a plan to achieve your short-, medium- and long-term goals. In short, financial planning gives us options to deal with the future.
If you think the time has come to take control of your financial life, be aware of the next articles and if you have any questions, leave a comment below.