Life isn’t a predetermined path where we are aware of all successes and pitfalls that we will encounter. Whilst pleasant surprises may be easy to deal with, unplanned expenses could cause a lot of problems viz. a medical emergency, a home relocation etc.; one thing that can hold you in good stead in such circumstances, is if you had money put aside as provision to deal with situations like these. Regardless of whether unplanned expenses come from known or unforeseen events, a sound financial foundation will help you tide over these situations.
Table of Contents
The need for planning
To ensure efficient utilization of finances, one needs to plan one’s expenditure and savings well. Most people live under the notion that financial planning is only possible with pot loads of money. That’s not true. Each person can engage in financial planning, regardless of their income. Achieving the right balance between income, expenditure, and savings will keep you in good stead amidst life’s ups & downs.
It is here that one needs to explore the benefits of having a financial advisor who has the right capabilities and necessary expertise. This is especially relevant if you are hard-pressed for time and find managing your finances time-consuming, confusing and overwhelming.
Understanding financial advice
Financial plans are developed around the premise of achieving the right balance between earning, spending, and saving money. A good plan includes laying down your life goals, determining their financial impact, understanding your risk appetite and then crafting a plan that helps manage your finances to help achieve those goals. The entire process of creating a financial plan and then following the plan on an ongoing basis then becomes a critical element of one’s life. Here’s a quick glimpse of what financial planning can do for us:
Income management
Managing your income becomes simpler with an effective financial plan. A good financial advisor will create a customized approach for you – determine a personal expense budget, list your tax liabilities& other fixed outgoings, budget family expenditures and other miscellaneous expenses, and create a savings nest for you.
Cash flow improvement
Improving your cash flow is easier than expected if you are aware how to go about it. Financial planning helps you manage your money in a disciplined manner. Careful budgeting, proper planning, and prudent saving will help you improve/increase your cash flow.
Family security
Emergencies occur more regularly than we think. Early financial planning can cushion and secure your family reasonably well against these emergencies. When you plan your expenses and savings, you also secure your family against unpleasant shocks.
Choosing investments
A judicious and efficient financial plan takes several factors into account, one of which is to invest in the right products. To ensure that you select the right instruments that work best for you, having a financial advisor is almost like a necessity. A good financial advisor considers your risk-taking ability, your investment capabilities, and other personal factors that are crucial to drawing a financial plan that’s best for you. In today’s times, this is more of a necessity than a luxury of choice.
Assessing the benefits
The effort that you put into financial planning will give you many benefits. Here are some of those advantages that can make a significant difference in your life:
- Gives directions to dreams: Financial planning, can be a key enabler that helps you achieve your dreams. Not only will you clearly identify your life goals, but you will also give yourself the ability to plan for them and work towards it in a focused manner.
Enables you to realize your dreams: Many a dream remains unfulfilled because it didn’t have the necessary resources to make it come true. By giving yourself a head-start with the help of a good financial plan, you are able to provision the finances that are required to help you realize your life goals. Hence, a sound financial advisor not only helps you manage your monies well, but could enable you to achieve your life goals and securing your future.
Financial planning, as you can see, is essential for one and all. In today’s dynamic world where finances & investment options are as complex as they are diverse, a financial advisor will help you wade through the chaos and streamline your finances for you. Come to think of it, investing in a sound financial advisor may be the best investment decision that you could make.
