While most of us have dreams and aspirations about the financial future we want for ourselves and for our family, only a few of us have a plan to achieve them. Financial planning is the most systematic and efficient way of pursuing our financial goals.
Despite knowing the benefits of financial planning and how financial planning may help you realize your financial goals, you may avoid pursuing financial planning thinking the following:
“I can get along without planning for my financial future.”
Financial planning simplifies and organizes your financial life, which in turn inspires the financial discipline and commitment you need, to follow your financial goals. It is found that households with a financial plan are 70% more likely to make sound financial decisions and pursue their financial goals, than the ones without. Financial planning gives you the roadmap you need to follow in order to achieve your financial goals in the most efficient manner possible.
“I will get to it later.”
Financial planning helps you make sound financial decisions. The sooner you start making smart decisions about your money, the better off you will be. The sooner you start planning, the more the time you have for achieving your financial goals. Also, the longer you wait to have a financial plan, the fewer the options and paths you will likely have in order to get to your financial destination.
“It’s too much work for me.”
Your financial advisor should create your personalized financial plan with the least amount of work for you. You will need to provide the financial documents that your financial advisor needs in order to prepare your financial plan (W2s, tax returns, bank and credit card statements, assets and liabilities documents, insurance policies, Will, etc.). Once your financial plan is in motion, your financial advisor will monitor its progress and update it when necessary.
“It’s too expensive.”
The benefits of financial planning far outweigh its costs. The savings you may realize from the expert financial advice on your taxes, investment, insurance, estate, cash flow and retirement, are far greater than what you pay for such advice. In many cases, a financial plan costs less than the amount most people spend on their coffee every day. Some financial advisors may even waive their financial planning and tax preparation fees if your assets, that they manage, are above a certain amount.
“It’s not needed for my situation”
Financial planning is for anyone who wants to organize their finances, make smart financial decisions, and pursue money goals. After all, making smart financial decisions is for everyone, regardless of their age, life stage, or financial status. Whether you want to accumulate a set amount of money for future life events, maximize your money using smart financial strategies, or ensure peace of mind regarding your financial future, financial planning can help you achieve your goals.
Securing your financial future should be your immediate goal and an utmost priority. Do not let these, or any other excuses, stop you from pursuing the financial life you desire. The sooner you start working on your financial goals, the sooner you will start maximizing your money and progressing towards your goals.