As the saying goes, ‘People don’t plan to fail, but they do fail to plan.’ To enable you to achieve want you want to, being prepared for every eventuality is a great way to help move you closer towards your goals.
You can do almost anything when you feel confident about your finances. So how confident are you? No matter what your current age or financial situation, if you haven’t already started or you need to make improvements to your existing finances, the best time to start is right now, especially in light of the ongoing coronavirus crisis. The financial plans you put in place today will lay the foundations for your and your family’s financial security and independence tomorrow.
Trying to get your attention
The truth is, though, some of us are better planners than others and some of us live for the now and spend in the moment. But somewhere out there, our future selves are waving their arms around trying to get our attention!
Being a good planner means you need to be more goal oriented and able to take control of your life. By planning ahead, you can then identify the associated risks, weigh and categorise them, prioritise and create a financial plan. In this way you can transform risks into opportunities and experience the rewards of taking them.
Increasing your net worth
Most people believe the key to wealth is a high-paying job. Yes, of course it’s easier to amass assets if you have more money coming in every month, but one key to increasing your net worth is to spend less than you make and then make it work really hard for you, and not someone else. Thinking long term is an important characteristic of accumulating wealth and achieving financial independence. Being financially independent means that the income you generate from investments alone is enough to cover all your expenditure.
Having a sound financial plan
But without proper financial planning we are not ready to respond to challenges that life may throw our way. Hence we become reactive. Having a sound financial plan in place ahead helps us to become proactive.
By becoming proactive and by starting that plan, we are then able to take the right action in the face of certain challenges and adversities. When you are proactive, you respond to situations rather than reacting to them.
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