Eric Arnold Planswell - Importance of Financial Planning
Here are some points that give you a clear thought about why you need financial planning-
1. Income - Having a financial plan helps you manage your income in a better way. You are aware of how much you earn, and this helps you understand where your money is going and whether it is enough to achieve the objective of your life.
2. Expenses - We can keep an eye on the money we spend on our wants and basic needs and splurge on luxuries. It also helps you to know how much you went overboard in a month and how much you need to cut back in the following months to stay within your planned budget. With various changes in your lifestyle, your spending also changes. It helps us in finding out the income requirements and what changes you can make to your earning capability accordingly.
3. Investment - A good financial plan will help you to choose the right investment plan according to your goals, income capacity, risk profile, etc. A plan has an investment portfolio that can help you to have a balanced portfolio at all times.
4. Taxation - you can assess your tax outgo with a better financial plan at the beginning of the financial year. You should plan your finances in such a way that you have to pay a minimal amount in a legal manner.
5. Retirement - Retirement is the golden period of life, and we all want a relaxed, carefree retirement. This is only possible if you plan your finances and keep track of your expenses. It is a must that you maintain cash reserves to take care of medical expenses and other emergencies of life.
Eric Arnold Planswell helps you plan your finances and anticipates financial requirements in various situations, and ensures the smooth functioning of financial flow at all times.
