Financial Planning

Importance of Planning

Why is financial planning important? Just as businesses need strong financial plans to thrive, people can use a similar systematic approach to managing personal and household financial affairs.

• Building savings reserves. Without such a plan, you are more likely to put whatever is left the day before you receive income into your savings. For most people, savings accumulated in this manner will grow very slowly, or not at all, unless there is a definite plan. Financial experts recommend saving at least 10 percent of gross income for most people.

• Prepares you for change. In today's world, change is inevitable. Having a plan can reduce anxiety and uncertainty.  You will have the feeling of security that comes in knowing you have done your best to prepare for your future.

• Improves communication and family relationships. The financial planning process requires that household members discuss individual and group goals, determine priorities, and consider consequences of various courses of action. Working together can enhance group unity and lead to more stable relationships.

Contact our Wealth Advisor today to learn more.