Financial Planning ? Do i really need it?

Now, a quick example : What do you do when you want to go somewhere this year end holiday ? Most probably, you will ask yourself and discuss with your loved ones :

• Is it going to be a local or overseas destination ?
• What are the options of accommodations – Home Stay or Hotel ?
• What is the budget available / how much total cost?
• How long will be the holiday?

Now, by discussing the above, the planning starts and these questions help evaluate options, budget and the overall holiday itinerary. These questions leads to decision making. So, similar senario goes to Financial Planning, only if we know what we want to achieve, then we will be able to start thinking, discussing, planning and eventually work towards achieving our financial goals. In personal financial planning, areas to consider involve questions like “what is your dream and goals?”, “what do you want to achieve in 5 / 10 / 20 years time?” “At what age would you want to retire?” and so on. To achieve your life dreams and goals, one need to start planning from the financial perspective, which involves budgeting, managing cash flow, saving, protecting and distributing one’s assets over time.   Without setting clear Financial Goals, one may not have clear directions to work towards. How much to save up, how much savings to achieve before retirement, is there emergency funds available etc.

There are many benefits of Financial Planning

  Many may have have the impression that with Financial Planning, they cant enjoy life because they have to save up and not able to spend on what they like to do. This perception is incorrect, because with Financial Planning, you will get to understand, plan and spend according to your capability, needs and eventually have a balance of saving, spending and protections covered. Here are some of the key benefits to Financial Planning :

1. You will have better control over your financial affairs. With the better understanding and control, you will avoid unnecessary spending, manage debts, avoid bankruptcy and avoid depending on others when come to financial matters.
2. The most important area is the relationships with your loved ones, family and friends. With financial well managed, you will get less stress, better managed emotions and thus build a better relationships with people around you, instead of having to borrow money from them.
3. You will have a more meaningful life. Meaningful life in the way where you will get to create your life goals, plan strategically how to achieving these goals and have better control at the later part of your life journey.

So, hope you have a better idea about Financial Planning after reading this. Contact www.eraadvisory.com.my for more details.   Financial Planning ? Do i really need it? Now, a quick example : What do you do when you Read more