What is a Financial Plan and Why Do I Need One?

September 27 , 2018

There is an old saying that failing to plan means planning to fail, and that bromide is certainly true in the financial arena. No matter how much money you make or how hard you work, financial security will not happen by accident.

Successful financial planning requires a proactive approach, and that is why it is so important for everyone, no matter what their age or circumstances, to have a solid financial plan in place.

This financial plan can take many forms, and it may change and evolve over the years. From having a sound household budget and controlling spending to designing an investment portfolio that will carry them to, and through, retirement. A financial plan is the foundation of a successful future.

You may think that a financial plan is something you can put off, but the sooner you start on the journey the better off you will be. From meeting short term and long term goals to saving for retirement, getting an early start on your finances now can pay off big time later.

If you are still in your twenties, you can still start working toward your financial goals. At this point in your life, it could be as simple as developing a map to reach your goals, or making sure you are saving enough for emergencies, retirement and further education.

As you get older and start a family, the priorities of your financial plan are likely to change. You may be looking at things like managing debt, starting a college fund for the children and ensuring that your risks are adequately covered.

Your financial plan is likely to change and evolve even more as you near your retirement years. Hopefully you have already started building a solid portfolio, one that includes a retirement plan and personal savings. By now, you are thinking about how to turn that portfolio into a steady stream of income, and once again a comprehensive financial plan can come in handy.

Your financial plan will include an analysis of your net worth and budget, along with information about expected inflation and its impact on future purchasing power. At this point, if you have not done so already, it makes sense to seek out professional financial planning.

Even if you have taken a DIY approach to handling your finances, the advice of a professional can be a real boon to your portfolio. At the very least, a financial planner can provide a second opinion and make sure you are really on track, but a financial professional can do much more than that.

A good financial planner can help you build the right portfolio, one that can bring you through your 20s, 30s, 40s and beyond. Whether you are just getting started with your career or already looking forward to the end of your working life, the value of a financial plan simply cannot be overstated.

Why Choose Aman Financial Planners?

Talk to Susan Amawi, Your Personal Financial Planner

A Fee-Only financial planning firm based in UAE, with a satellite office in Jeddah, Saudi Arabia. We provide an independent, unbiased, objective review of your financial situation, and seek a long-term ongoing relationship to help you meet your financial goals. We are trustworthy, someone who cares, listens, understands and passionate about helping you.

Tags :  benefits of personal financial planning  Financial Planning  Investment Planning  Retirement Planning  why financial planning is necessary