Most people would not go on vacation without a map and a plan! Yet these very same people might travel through life without a financial plan that shows them exactly what they have to do, to get them to where they want to be! It is much easier to reach your destination, if you know exactly where you are and can then plan the best route to get you there.
Financial planning can help you navigate your life by providing the information you need to determine if you need to brush up on savings, cut down on spending and determines how far you are from your goals. Financial planning is an extremely powerful tool.
Some of us who do not have a financial plan, might get what we WANT today, but we might not get what we NEED several years from now. For example, this can happen if you buy a luxury car when you have just started earning or received a fat commission – only to discover that you cannot afford to buy a roof over your head later on. With the Covid pandemic still raging, did we prudently put in place a contingency fund to tide us through the turbulent patches in life or had we depleted our contingency fund to splurge out on that latest luxury car just a couple of years back?
Without a financial plan, you might not see the bigger picture. For example, you may be busy investing your hard earned savings but unknowingly pay more interests on various loans and/or taxes than necessary. You may even end up making very different choices about spending and saving and this can mean missing out on meeting your life’s major milestones.
The absence or lack of financial planning could lead to desperation. This is when one might be persuaded to make hasty financial decisions to make up for lost time, and at times, perhaps even become a victim of a scam for quick returns. More financial worries may emerge as you may lose control of your spending and fall behind on your bills.
Remember, if you fail to plan, you are only planning to fail! A financial plan is not about becoming rich – rather it’s about NOT being poor. It’s about doing more with what assets you already have. Talk to someone with the right financial knowledge to help manage your wealth and chart your future. It’s never too late.
I do agree with you, many of my friends love to plan vacations and holidays ahead prior to the pandemic but when we speak about financial planning, they tend to avoid it. Perhaps they haven’t meet a suitable financial coach to talk about this topic. Appreciate this article.
No one wants to fail. Period. But the problem is usually we don’t take stock of our finances and live without planning. That’s when the failing process starts….