Financial planning, a benefit for all !
People set goals to achieve in life and one common mistake that comes along with it is lack of Financial planning . Even though things may seem attractive on the market and as we long for, we might pour the little money into purchasing the undesired products.
But living within your means and putting effort in only acquiring things that matter per your financial strength, is key in financial success.
Simply put, when you manage the little money you have to achieve special goals, it is indeed a financial planning.
There is the need to create a suitable plan for budgeting, saving, investing and managing your debts so as to avoid financial crisis. Living a spendthrift lifestyle could ruin one’s chances of making a financial breakthrough.
A solid financial plan typically includes the following:
1. Budgeting : This informs the individual to track his income and split it into portions that meet his or her needs. There should be a budget that corresponds with the income received per week or month.
2. Saving: No one knows what tomorrow has, no matter how menial one’s income may be, it will be prudent to set a portion aside for unforeseen expenses in future.3. Investing : investing is key in reaping the outcome of what you sow. When one invests in assets like stocks, farm, bonds, real estate etc. it can lead to making reasonable profits on it assets invested.
4. Insurance :Protecting against risks (health, life, disability, etc.) to avoid financial setbacks. Insurance companies provide relief to customers in times of difficult situations. It is very advisable to indulge with insurance policies that could insure your future.
5. Retirement Planning :Ensuring you’re saving enough to live comfortably after you stop working. Retirement plan should be part of our financial journey so as to enjoy the fruit of our labor in future. Setting small amounts of money from your income for old age is a great plan for all.
6. Estate Planning ; Making plans for what happens to your assets after you’re gone (wills, trusts, etc.). You have to plan in order to make beneficiaries relevant after life.
