The Importance of Financial Planning

Financial Planning is an important component for everyone’s financial life. It is the key to achieving financial freedom and helps you see the “big picture,” when it comes to setting long- and short-term life goals and being on track to achieve them. A proper financial plan outlines your personal circumstances, objectives and risk tolerance; it also acts as a guide in help you choose the right kind of investments to fit your needs, wants and goals.

Certain events such as marriage, planning for children, paying for college, receiving an inheritance, purchasing a new home, divorce and retirement, among others, can trigger the need for a financial plan However, having a financial plan in place at any stage of your life will help you see if you are on the right path financially and can diminish the stress caused by uncertainty regarding your financial future.

Some of the additional benefits of having a financial plan are:

  • Helps you manage income more efficiently;
  • Works with the design of your budget of expenses, savings, money needed for taxes and other money-related transactions;
  • Allows you to examine and consider ways to increase your cashflow and determine your spending habits. By increasing your cashflow, you will also be able to consider investment opportunities that might improve your finances;
  • Assists in achieving peace of mind by providing you and your family financial security (i.e., determining the amount of life insurance needed to take care of your family should unforeseen circumstances arise);
  • Helps to plan to increase your savings;
  • Measures your financial goals and helps you better understand how the decisions you make impact your financial health;
  • Shows the assets and possible liabilities that can be attached to building income, as well as how to minimize monetary consequences or burdens in the future.

One of the best ways to develop a Financial Plan is to speak with a Financial Advisor. If you have not worked with one before, you may want to get recommendations from people you trust or do your research and look for financial professionals who are a good fit for your needs. A financial services professional can help you review the current state of your financial portfolio discuss with you long-term planning, anticipated changes, investment choices, and results in your customized plan.

Keep in mind that life circumstances change constantly, so once your financial plan is in place, make sure that it is periodically reviewed so that you continue to stay on target to achieve your financial goals. Happy planning!


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Advisory services offered through EWG Elevate, Inc. dba Protection Point Advisors.

This represents a partial list of clients. They have not been compensated and were not selected based on duration, performance, account size.