For a long time, financial planning has been viewed as something that can only benefit those who are already very rich. Who has so much money that they need a plan for how to properly spend it all?
In reality, a financial plan is something that can help everybody, regardless of how much money you have. Financial planning can actually be most beneficial to those of you who are currently struggling to keep on top of your finances by offering an exhaustive view of your current financial situation, and revealing steps you can take to get yourself back onto a steadier footing.
Planning for the future
By having a clear financial plan and comprehensive overview of your spending and earnings today, you can create an accurate picture of how prepared you are for the future.
Manage your cash flow
When you have such a clear picture of your full financial situation, it can help shed light on areas you’ve been overspending that you might not have been aware of.
For example, if you stop in your local coffee shop on the way to work each morning for a cup of joe, it’s easy to think this is a small expense that won’t impact your finances overall. However, when you are able to see how much that one cup a day adds up to over the course of a week, month, or a year, you may be shocked at the reality of how much you’re spending.
A financial plan that clearly lays out all of your outgoing expenses makes it easier to spot any areas where you may be overspending and reign them in.
Work towards your goals
Many people have a specific financial goal that they are hoping to achieve, such as having enough money for a comfortable retirement, or saving up for a large purchase like a house. It can, however, be very difficult to accurately gauge how close you are to achieving those goals.
Having a financial plan is a concrete step you can take towards making those plans a reality. A plan will help you work out how long it will take to achieve your goals and will make clear any actions you need to take to manage your spending so you can invest in your future.
Help you take back control
We all have moments of feeling like our financial situation is completely out of our own hands. Having a financial plan in place means that you are able to take back some autonomy over your finances. It’ll let you know exactly where you stand with your finances, and leave you feeling more in charge of your life.
Potentially Reduce Taxes
Financial planning can help shed light on tax strategies that can lead to reductions in capital gains, inheritance and income tax liabilities.
If you’ve been losing sleep worrying about your financial situation, contact Trinity Financial Mission now and we’ll help you take back control.