We’re constantly hearing about financial planning. It’s a term that follows us in day-to-day life, in TV commercials, radio and podcast ads, and even on billboards. By now, most of us are probably aware that it is smart and beneficial to have a financial plan, but do you know exactly why that is? If you have been considering putting a plan together, either yourself or with some help, here are some reasons why a financial plan is a crucial tool to have.
Why Do I Need a Financial Plan?
Sure, many of us have financial goals, and some of us may even promise to implement better spending habits as our New Year’s resolution, but are these real plans? It’s easy to say you are going to start budgeting or saving, it’s harder to commit to the act, but it’s a whole different question to construct a an interconnected financial plan that includes all aspects of your financial life.
Taking a strategic approach to managing your finances is a good way to keep tabs on how you’re doing, but even the most organized person doesn’t always take the time to map out a comprehensive plan [1]. In some cases, although you may feel confident about how you’ve been handling your finances, learning how you can improve your and your family’s plan can allow you to make smarter decisions. In other words, financial planning betters your future, encourages discipline, and exposes individuals to potentially helpful strategies that, if employed now, can benefit them in the future [2].
A Financial Plan Can Lead to Better Habits
So, how exactly does a financial plan tie into your overall well-being? Individuals or families who create financial agendas are better able to reach their life goals. This might include making major purchases, retiring comfortably, or even providing for your children’s or grandkids’ education [3].
To get started on your own financial plan, here’s what you should consider [4]:
- Your Goals & Assets
- Tax Deduction Strategy
- Debt Management
- Retirement Strategy
- Estate Plan
Having a written financial plan gives you a measurable goal to work toward. Because you can track your progress, you can reduce doubt or uncertainty about your decisions and adjust help overcome obstacles that could derail you. If you would like to start improving your future through financial planning, contact us today for a complimentary review!
[2][3]: https://smartasset.com/financial-advisor/why-is-financial-planning-important
[4]: https://www.investopedia.com/terms/f/financial_plan.asp
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