A financial plan makes you a better manager of your financial resources. It keeps you on track with your goals, and helps to regulate your spending by giving you a bird’s-eye-view visibility over your assets and liabilities. Let’s look at some of the ways that a financial plan can benefit you.
Provides a Road Map to Achieving Your Goals
Maybe one of your new year’s resolutions was to get a car, buy a home, or invest in securities. These financial goals will remain dreams if there is no clear roadmap to when and how you plan to attain them. A good plan sets the timeline for your goals, and guides on how you can adjust spending and saving to hit your target.
Readies You for Significant Life Events
Retirement, wedding, moving to a new city – these are a few examples of huge life events that need meticulous planning. The money will always be a stumbling block, unless you plan well for it. With a freestyle financial life, your dreams and ambitions will hit a dead end.
Saving is one of the best practices in financial planning. By the time your kids get to college, you will have enough money for their education. By the time you decide to tie the knot, you won’t go back to poverty after the honeymoon. The earlier you start planning for your significant life events, the more confident and optimistic you will be about your future.
Guides Your Investments
A well thought-out plan identifies ways you need to invest, to meet your financial targets. It similarly identifies your risk tolerance for particular investments, helping you decide what can work best for your case. The best financial plan helps to diversify your investment to reduce risk and losses and limit them to what you can bear without going under.
Provides a Way to Measure Your Performance Against Your Target
Having clear ways to identify growth can help you adjust your goals, investment, and spending as necessary. For instance, if you woke up with newfound wealth from an inheritance or a jackpot, your goals might shift to allow for increased spending. But if you run into a medical emergency, your expenditure will have to decrease.
Think about your financial plan as the immune system for your financial wellness. It helps to set the right protection for your future, and guides you on how to respond to emergency financial needs. Most people often find it hard to keep track of their financial health without professional assistance. A financial advisor can help you navigate a complicated financial life, and accelerate your wealth creation.
As a Branch Manager, Kay helps personal and business clients by providing products and services designed to meet their individual needs. A dedicated volunteer with the City and County, she has over 33 years in banking and a vast knowledge of financial services. Kay is able to provide financial counseling through consultative conversations as a part of her role. Whether your needs are deposit or loan related, contact Kay and see how she can help with your individual financial security!
Asst Vice President & Branch Manager • 770-515-7073 • [email protected]