Future is very unpredictable. No matter how hard we try, you cannot really predict what is in store for you in the times to come. However, what you can do is to prepare yourself for it to the best of your abilities. Each one of us has his/her own goals, desires and objectives that we dream to fulfil at some or the other stage of our lives. These objectives cannot be achieved without solid financial planning.

Seven reasons why you need Financial Planning 

1) It will Manage your finances more effectively— With financial planning, you can draft your monthly budget through managing your cash flow expenses, taxes, this will help you to plan your savings more effectively.

2) It will Improve your Financial Stability and Family Security– financial planning includes proper financial planning includes insurance coverage, health protection, medical insurance, house protection insurance, etc that will give your family stability and security.

3) It will Improve Standard of Living– Once your drafted financial plan is placed properly then you need not to work for creating wealth. Wealth will be created automatically from the wealth saved and invested. Once you have financial freedom, you can enjoy a better standard of living for the rest of your life.

4) It will Improved Financial Understanding— You are able to gain visibility into your finances in the future. You have a fair idea of how much money you would have, say ten years down the line. You would be aware of the returns your investments should earn to achieve your goals.

5) It will Prepare you for Emergencies— Financial planning helps you to properly monitor your income source and grow it further. It lets your money work for you. It allows you to multiply your money that you can utilize at the time of need

6) It will Increase your savings– When you create a financial plan, you get a good deal of insight into your income and expenses. You can track and cut down your costs consciously. This automatically increases your savings in the long run.

7) It will help you to Get an Early Retirement–. Financial planning helps you generate enough wealth for a happy retirement. You need to plan today for a better and brighter tomorrow

Financial Planning gives you clarity in life, provides direction & meaning to your financial decisions. It allows you to enjoy a relaxed life with no financial anxieties and allows you to have a peaceful sleep, and be confident that you will be able to maintain your current standard of living after retirement also.

Facts and importance of budgeting 

Budgeting is one of the most important financial habits a person can adopt. It can help you control your spending, track your expenses, and save more money. Budgeting can also help you make better financial decisions, prepare for emergencies, get out of debt, and stay focused  on your long-term financial goals. 

Importance of budgeting, and reasons for it being a vital part of your financial well-being. 

❖ Budgeting helps you control your spending—budgeting helps to keep a close eye on  your daily spending habits, understand the impact of seemingly small expenses, and  take control of your spending. 

❖ Budgeting keeps you on track for your financial goals—Through a budget you can  reverse engineer your goals, and develop a clearly defined process to achieve them.  

❖ Budgeting helps you find financial contentment—Financial contentment is one of the  foundational elements of good financial behaviour. It keeps you from spending money  that you don’t have, and helps you to enjoy your financial journey 

❖ Budgeting keeps you from feeling financially overwhelmed—With budgeting you  never spend beyond your means; you are always well-prepared for unexpected  expenses. 

When you operate your finances without a budget, you don’t really have anything holding  you back from spending beyond your means. You can have a general idea about how much money you can spend each month, but without hard, accurate numbers, it’s easy to  lose control of your spending habits.

important links – 

1.  https://corporatefinanceinstitute.com/resources/knowledge/finance/budgeting/
2. https://www.godigit.com/finance/importance-of-financial-planning