The Importance of Financial Planning
The importance of financial planning is directly
related to the purpose you see in your life. Some people may have
already discovered their life's meaning and others are still
searching, but without doubt we all have one.
The purpose of your life is often confused with
the struggle to survive and you may not realize that staying
alive is only a part of your life.
Well, if survival is not the essence of
your life, you don't want to have this necessity have a
significant role, right? However, we all realize that our
basic needs and money play an important part in our day-to-day
The irony is that in spite of knowing how hard
it is just to make ends meet and/or to afford the life style you
lead, you normally give little importance to plan out what you do
with the money you earn with so much effort, or if you do some
planning you don't take into account all the considerations which
might affect you.
"By failing to prepare, you are preparing to fail"
The consequences of not planning your finances
The outcome of not planning your finances can
affect your life in the short and long term in many ways such as:
- not knowing what happened to your money,
- just getting by instead of enjoying life,
- family conflicts over money,
- never discovering or realizing your mission in life,
- always being caught off guard when unexpected challenges
After some time of suffering through these
effects it's easy for a cloud of discouragement to fall over your
face and your general outlook on life becomes pessimistic.
On the other hand, we're not supposing that we
can look into a crystal ball to tell you today everything that's
going to happen in your life, but instead take into account
likelihoods which affect everybody and can be adapted to your
personal objectives. This is enough to allow you to plan.
Conclusion about the importance of financial planning
In consequence, the importance of financial
planning is found in protecting the finances you and your loved
ones depend on. This protection is reflected in:
- Eliminate stress (doubts, uncertainty, fear, etc.) of not
knowing how you'll survive,
- knowing what you need to do to achieve what you want,
- and elevate your self-esteem making you a better person
capable of discovering and achieving your life's mission.
In a nutshell: if you're seeking freedom
and financial security, don't overlook the importance of
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