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9 Reason Why financial Planning is important.

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 )


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