We’re already at the end of the third month of 2018, and if financial planning isn’t in your New Years resolution, this is the best time to update that list. No matter how old you are right now, or what you’re doing with your life, financial planning is always beneficial. It won’t only get you more organized with your income and expenditures; it will also direct you into saving for your future.
Not much of a finance person? That’s fine, you can always hire a company to give you financial advice, or you can consult with your friends who happen to be studying finance. Check out the reasons below if you’re wondering why you should start financial planning for the rest of the year.
Inflation is the increase or decrease in the value of a currency. It depends on the demand and supply for money in a country, and also the import and export. The products that you use daily are mostly produced abroad, and the price of those products can go up or down depending on the inflation from that country. One day your deodorant may cost 5 dollars, while the next day it may cost 6 dollars because now your currency is less valuable in the country where that product is produced. Financial planning will help you sustain inflation so that whatever the value of your currency may be, you’ll still be able to survive.
We can name the most common long-term goals that every person has, which are purchasing a car, owning a house, education, marriage, etc. And all of these goals are not cheap. That is why you need financial planning to meet your financial goals and ensure that your earnings can be saved for it while still being able to spend enough for your daily needs and entertainment. It is better to plan now and possibly invest so that you may earn beneficial returns over time.
A lot of people think that insurance is a waste of money and will trouble you, but this is wrong. Insurance is the only protection you can have for emergencies that will come in life. There are inevitably going to be times where you don’t have enough money for when you break your leg from a biking accident, or your house is suddenly flooded, or you want to pursue your Master’s degree. Financial planning would include purchasing insurances for these events, including the monthly installments you’ll have to pay for it so that you’ll get the security you need in life.