How A Financial Planner Can Help


If there is one problem people go through in their lives is how to plan their finances. A few people know that financial planning is an art that requires excellent skills to be undertaken effectively. Most people blame the increased cost of living for the woes when it comes to planning their finances, but this is the case. Regardless of the amount you earn, it is necessary you plan you have effective financial planning to ensure that all your needs are met effectively. If you have issues in planning your finances, you need to seek help from a financial planner. Here are some of the ways that a financial planner will help you.

Plan your expenditures

Most people get into problems, by realising that they cannot cater for all their expenses with their income. This does not happen because the amount they earn is so little to cater for the expenses. The major issue is that they do not know how to organise the amount earned to cater for these expenses. A good financial planner will assist you to allocate each of the expenses the right amount and ensure that everything is catered. All you need to do is to explain to them your income and what you want to spend the money. They will then advise you on how to can allocate your money to cater for such expenses. If there are some unnecessary ways you are spending money, they will help you avoid them. Besides, they also advise you on how to adjust your budget to ensure that no expense you do not meet.

Save you stress

It can be stressing if you realise that your income cannot cater for all your expenses. A good financial planner will assist you in managing your finances effectively and ensuring that you will not undergo any form of financial stress in the process. You will find it easy to manage your finances and avoid frustrations that come by realising that your income is no longer enough to sustain your lifestyle.

Save money

You will pay your financial planner some amount for the services they offer you. However, the fee they charge for their financial planning services cannot be compared with the amount you might save in the process. They will advise you on how to avoid impulse and unnecessary expenses. Besides, they also help you how to plan your finances to ensure that you do not incur debts that might be costly for you to pay.

Help you save for your future

Your financial planner will also assist you to keep money aside for your future. Besides they will help you save on emergencies that might arise in your life. With a good planner, there is no one time you will find yourself in a financial dilemma because you have money set aside for such eventualities. Regardless of the amount that you earn daily or monthly, a good planner can help you save something for emergencies and your old age. Thus, you will know that your future is secured financially.

Benefits of Financial Planning

Financial planning helps you map your financial future. It means that you have a clear picture of your set short term and long term goals and you know how to get there. Managing money does not come naturally to many people.

Financial planning comes in handy by covering different aspects of life from budgeting, planning for emergency expenses, retirement plan to planking huge purchases. Whether you are an expert or you have little money management skills, here are the benefits of financial planning.

1. Eases Decision-Making

Financial planning takes into account your present and also future financial position. This makes decision making easier as you know the expenses you intend to incur in a certain duration or assets you intend to acquire in a given period of time and how to get there. It, therefore, helps you make informed decisions such as how much to save, short term expenses to avoid, etc.

2. It Forces You To Budget

You can’t have financial planning without a budget. A full financial plan relies on your monthly/regular budgeting. You get to know what to pay, when and from which income. It means that you keep track of your income and expenses since the surplus is what will make your financial planning succeed or fail. Regular budgeting also helps you track how well you are doing with financial planning.

3. Helps Fund Large Purchases/Expenses

A new car, new home, and college fees are some common expenses which need huge amounts of money. Since you may not have the cash at hand, financial planning will help you determine whether you need financing options such as loans and which one best suits you.

In case you start your financial planning early, it helps you know how much you need to set aside over a given period of time to accumulate money for making the large purchase.

4. Contingency Planning

There no guarantee on what the future holds. Financial planning helps you analyze potential occurrences and protect your finances. This means that you set money aside or take insurance covers for eventualities such as a job loss, disability, illness or death.

5. It Instills Financial Discipline

It is common for people to spend more than their earnings. Facilities such as credit cards may enable you to spend more than your limits. This will slowly get you in a debt cycle where you borrow every month as your income goes towards settling unnecessarily debts. With accumulating debts and constant income, you will get deep into debt with time.