Here are nine powerful reasons why financial planning will get you where you want to be.
1. INCOME: It's possible to manage income more effectively through planning. Managing income helps you understand how much money you will need for monthly expenditure and savings.
2. CASH FLOW: Increase cash flows by carefully monitoring your spending pattern and expenses. Prudent spending and careful budgeting will help you more of your hard earned cash.
3. FAMILY SECURITY: Providing for your family's financial security is an employer important part of the family financial planning process. Having the proper insurance coverages and policies in place can provide peace of mind for you and your loved ones.
4. CAPITAL: An increase in cash flow, can lead to an increase in capital. Allowing you to consider investments to improve your overall financial well-being.
5. STANDARD OF LIVING: The savings created from good planning can prove beneficial in difficult times.
6. INVESTMENT: A proper financial plan considers your personal circumstances, objectives and risk tolerance. It acts as a guide in helping choose the right types of investments to fit your needs, personality, and goals.
7. FINANCIAL UNDERSTANDING: Better financial understanding can be achieved when measurable financial goals are set, the effects of decision understood, and results reviewed.
8. ASSETS: A nice ' cushion' in the form of assets is desirable. But many assets come with liabilities attached. So, it becomes important to determine the real value of an asset. The knowledge of settling or cancelling the liabilities, comes with the understanding of your finances. The overall process helps build assets that don't become a burden in the future.
9. SAVING: It used to be called saving for a rainy day. But sudden financial changes can still throw you off track. It is good to have some investments with high liquidity. These investments can be utilized in times of emergency or for educational purposes.
Content created and supplied by: Dubiyale94 (via Opera News )
Opera News is a free to use platform and the views and opinions expressed herein are solely those of the author and do not represent, reflect or express the views of Opera News. Any/all written content and images displayed are provided by the blogger/author, appear herein as submitted by the blogger/author and are unedited by Opera News. Opera News does not consent to nor does it condone the posting of any content that violates the rights (including the copyrights) of any third party, nor content that may malign, inter alia, any religion, ethnic group, organization, gender, company, or individual. Opera News furthermore does not condone the use of our platform for the purposes encouraging/endorsing hate speech, violation of human rights and/or utterances of a defamatory nature. If the content contained herein violates any of your rights, including those of copyright, and/or violates any the above mentioned factors, you are requested to immediately notify us using via the following email address operanews-external(at)opera.com and/or report the article using the available reporting functionality built into our Platform See More