subject: Financial Planning, Who Needs It? [print this page] Financial Planning, Who Needs It? Financial Planning, Who Needs It?
Many actions we take throughout our lifetimes will have a significant positive or negative impact on our current and future financial position. Some of these decisions include our careers, the type of home and vehicle we buy, how much and where we invest our money. These decisions are usually made in an attempt to improve our standard of living and the quality of our lives.
Quality of life is inevitably linked to factors such as environment, access to quality education and healthcare and financial security. Material possessions, luxuries and leisure are associated with a standard of living. However, quality of life and standard of living is a function of wealth because without money we are unable to improve either of these.
However, it is not only our actions that have an impact on our financial position. Many factors are unforeseen and out of our control such as interest rates, inflation or costs of living, unemployment, disability and death to name just a few. Therefore it makes sense that we should not only focus on creating wealth to improve our standard of living but also protecting our quality of life.
Financial planning starts at the end. A financial planner can help set goals and devise a plan of action that allows us to accumulate wealth in the most effective and appropriate manner. In addition, a planner will put in place the necessary contingency plans to ensure financial security. Essentially, financial planning provides a blue print of how much and where we need to put our money in order to achieve our goals.
You don't need to consult a financial planner to create a financial plan but their insight and experience can be considerably helpful in understanding the process as well as identifying opportunities and risks. A successful plan will beat inflation, minimise taxes, manage the unexpected, achieve your goals and your retirement needs. Financial planning is essential for everyone, so get started planning your finances.
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