Benefits of financial planning
- A good financial plan helps to manage and minimise risk.
- Knowing what's out there in terms of financial planning will help with decision-making.
- Financial planning is for many age groups, income levels and life stages.
A financial plan should address your financial situation, enable you to prioritise or perhaps re-evaluate your objectives and provide clear strategies to help you achieve them.
A robust financial plan should cover all financial aspects of your life and enable you to reach your goals in a practical and measured way. A key element is to minimise the risks to you if any unfortunate events occur unexpectedly to you or your family.
ExampleIf you are injured and cannot work, an effective financial plan should have you covered in terms of insurance so that your savings and ability to meet your living expenses are not jeopardised, enabling you to rest and recover without major worries. |
Further, a sound financial plan should empower you to manage your financial affairs and provide you with a greater understanding of your finances. If you stick to your plan, it should encourage you to avoid excessive spending and unmanageable debts, minimising potential financial worries due to a lack of planning.
Consider
The ability to make and live with our decisions is a challenge and a skill. Financial planning can help you to know what you want and what is ultimately important to you. It can create purpose and contribute to peace of mind.
| What is financial planning? |
| Developing a financial plan |
