Six Advantages of Financial Planning for All Ages

Delwin Graham & Eric Brown - Oct 05, 2020
When you're considering financial planning to take care of your investments and family, you'll want to understand all the advantages that are on your side – from a healthier financial outlook to a better grasp on what it takes to assess risks.

When it comes to protecting your finances, you're going to find that financial planning is going to provide you with a considerable advantage. Not only will financial planning teach you how to be smarter with your money, it will teach you how to invest wisely.

If you're looking for the benefits that come from financial planning, then you've landed in the right place. Continue reading for a guide detailing the advantages of personal financial planning.

1. Debt Management

Whether you've got student loans that you need to pay back or credit-card debt that you need to reduce, financial planning can help you out. It teaches you how to budget all of your income to ensure that you can slowly pay off your debts without living paycheque to paycheque.

You'll find that with the help of your financial manager, you'll watch your debts slowly lower themselves, and then once they’re completely paid off, you can then allocate more funds to other areas of your budget.

2. Provides Security for Your Family

One of the last things that we think about is leaving our loved ones behind in the event of our untimely deaths. But, when you've not taken the time to get your finances in order, it can leave your family with a pile of unpaid bills and funeral expenses to tend to.

When it comes to the financial planning process, a vital component of the process is setting aside money to cover expenses after you've passed. This is helpful, especially if you're the breadwinner of the family.

Setting aside funds will also help your family to continue providing for themselves until the next family member takes over the role as the family breadwinner. Considering the risks associated with life will provide you with the knowledge you need to make better choices when it comes to your finances.

3. Increase Your Financial Knowledge

When most people begin financial planning, they don't have a large amount of knowledge when it comes to their finances. Financial planning will help to increase your understanding of financial planning and analysis.

Meaning that you're going to learn how to assess risks and invest your money wisely. As your knowledge continues to grow, you'll find that you can tweak certain habits that you had to ensure they contribute to the financial health of your future.

There are going to be times when the risks don't pay off in the way that you would've hoped but take that as a lesson to make better decisions with your money in the future. Financial planning will help you identify common wealth management mistakes and avoid them.

4. You'll Save More

Saving money can be challenging when you don't know how much income you are bringing in and how much of it is going out to bills and other expenses. This is known as your cash flow and should be monitored closely to ensure that you're setting aside the correct amount of funds.

After you hire someone to help with your financial planning, you'll be able to keep a log of all the money you've got coming in, money going out, and the amount that you've saved. Over time, you'll find that your savings account has tripled right before your very eyes.

5. Retirement Planning

Retirement planning is essential if you hope to sustain your lifestyle after you've finished your career. More than one third of Canadians have no retirement savings.

Proper financial planning is the best way to ensure that you've got the money you need to secure your future. The company that you work for could've provided you with retirement planning information during your training. In the documentation they provide you, it will detail how the retirement account works and allow you to specify the amount that you'd like to put into your account each pay period. In some cases, the company that you work for may match every dollar that goes into your account up to a certain amount.

Taking the time to plan now will help give you the peace of mind you need as you approach your future.

6. Increased Happiness

You've all heard the saying that “money buys happiness,” and that's not true, but experiencing issues with money can be a source of stress and worry for most people. When you manage your money, it will help to ease the stress that you feel every day.

Again, while money doesn't buy happiness, it can reduce the amount of stress you feel and provide you with the time and energy you need to dedicate to the things in your life that do make you happy, whether that means spending more time with your family or time participating in various hobbies that you enjoy doing.

With financial planning, you'll also have the wiggle room you need to take your family on vacation and make memories that are going to last a lifetime. What could be better than that?

Financial Planning Done Right:  Money, Money, Money

When you're considering financial planning to take care of your investments and family, you'll want to understand all the advantages that are on your side – from a healthier financial outlook to a better grasp on what it takes to assess risks. Financial planning should be a part of everyone's life to help them better manage their money.

When you're looking for someone to help you with your finances and wealth management, contact our experts at Graham Wealth Partners.