The Importance of Personal Financial Planning

“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin 

As it is important for a business to grow and survive in the market while generating profitability and maintaining stability, financial planning is as important for your personal life and securing the future of your children and dear ones.

Personal financial planning must be regarded as one of the most important things that you can do to make your life better and satisfying.

Helping you grow financially and building your wealth successfully, personal financial planning gives you lots of benefits by providing you stability and satisfaction in all the aspects of your everyday life pertaining to money.

Maintaining your working capital efficiently, that is, being in a position to clear your day-to day bills and to meet all the expenses of everyday life successfully will give positive feelings, while it enables you to be in the money. These essential aspects are maintained by means of effective financial planning that involves preparing monthly budgets as well.

Personal financial planning is of great importance and value for you to provide a reasonable status in the society and to help you greatly after you get retirement. During the unstable economical conditions, personal financial planning leads you to deal with the circumstances effectively. More importantly, on the basis of effective financial planning, you can think of successful retirement.

As a good, caring and responsible parent, you need to undertake financial planning in an effective and efficient way so as to maintain all the expenditures in relation to the educational requirements of your children. It is also essential for futuristic planning for your kids, such as, educating them in accordance with your expectation or their ambition of becoming a particular professional.

One of the extremely important benefits you can gain from effective financial planning is that you can even survive during the hard times in which some unexpected expenditures are incurred. It is worth mentioning here, the process of preparing monthly budgets and being stick to it and spending money as per the needs will lead you to handle the situations satisfactorily. In this way, you will not only be able to maintain working capital efficiently, but also make good future planning.

Finally, it is noteworthy what has been said by Warren Buffett
On Earning: “Never depend on single income. Make investment to create a second source.”
On Spending: “If you buy things you do not need, soon you will have to sell things you need.”
On Savings: “Do not save what is left after spending, but spend what is left after saving.”
On taking Risk: “Never test the depth of river with both the feet.”
On Investment: “Do not put all eggs in one basket.”
On Expectations: “Honesty is very expensive gift. Do not expect it from cheap people”

Written by:
K. A. Fareed (Fareed Siddiqui)
Writer, Trainer, Author, Blogger, Software Developer
BBA, MBA-Finance, MPhil-Financial Management, (PhD-Management)
MA-English, MPhil-English
Post Graduate Diploma in Computer Applications and Programming
Certificate course in English language proficiency
Level 1 – Leadership and Management ILM – UK
Pursuing CMA-USA
Individual Member of Institute of Management Consultants of India

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