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How Does One Plan For Their Financial Future?

 
 
Photo of a financial advisor with his back to the photo addressing a crowd of people.
 

The one thing that most of us need to remember is this! We need to start planning for our financial future as soon as we can. Even if we were to start planning while we are still in high school; the earlier the better.

It does not do any good to put it off until we are close to retirement or until we find ourselves either in an emergency or in the midst of a messy relationship break up or other type of messy situation. The worse thing is for you to wake up one day and bingo! You are faced with unmanageable credit card payments, a loss of employment, a medical emergency, or having to pay off creditors in a hurry.

So how does one go about planning their financial future given what you have just read? First off; chances are that you are going to start off planning your financial future for just yourself but more often than not you are going to change this plan based on the inclusion of a partner, kids, and even grand kids into your life over the course of time.

Here are some facts for your consideration:

  1. You need to ensure that your financial future contains a plan that is flexible and one that can easily be changed to suit evolving circumstances.

  2. You need to build your financial future around the ability to deal with sudden and prolonged emergencies and circumstances. The old saying of saving for a rainy day should be kept uppermost in your mind.

  3. You should start off by planning a financial future that would only be about you but be prepared to change your financial future when/if a partner and/if kids come along.

  4. Your financial future should be able to accommodate: saving for retirement, putting aside enough funds for three months in case you suddenly lose your job or have an unexpected medical emergency, funds for medical insurance, and funds for home insurance.

  5. The trick of the trade as they say is for you to be able to live for at least three months off of your savings should anything sudden or unexpected were to take place. The three months safety net is just what is generally suggested by many financial experts.
If you have a partner and kids, then your financial future would need to include the following:
  1. The putting aside of funds for college education for your kids.

  2. Medical insurances for your family.

  3. A three months emergency fund for your family to be able to live comfortably should you suddenly find that you are without income or that you are suddenly laid up due to some unforeseen medical mishap or accident.

No financial future is ever carved in stone. There is always going to be something unexpected that will occur that will force you to make changes to your financial future. You should also take care not to fall into the trap of basing your financial future on either a long lasting career or constant employment. This is one of the most common pitfalls when it comes to planning one's financial future.

Finally, you should make a huge effort to attend financial planning seminars in your area. Almost all reputable financial institutions offer these on a regular basis. You could start your research by talking to your own financial institution. They will be able to help you in many ways.

Here are some resources to get you started:

How do I plan my financial future:
http://bit.ly/2isrQXR

The importance of financial planning:
http://www.captivate-tips.com/financial_planning_imprtnc.php

How to plan for a successful financial future:
http://www.wikihow.com/Plan-For-a-Successful-Future

 
Author Donna Jodhan Initials. DJ.


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