The Benefits of Financial Planning
There are many benefits to financial planning, and they all involve the same basic principles: saving and investing money for long-term goals. However, financial planning isn’t just about investing but also supporting sound money habits. For example, a life insurance policy can provide peace of mind if you are suddenly left without a job, and an emergency fund can give you peace of mind should something unexpected happen.
Reduces uncertainty around finances
Financial planning is an excellent tool for reducing uncertainty around finances, as it indicates what the outcomes are expected to be. When people know where they stand concerning a goal, they are more likely to take the necessary steps to get there. In addition to reducing uncertainty, financial plans also direct actions toward the desired outcomes. This coordinated action is more likely to result in the desired outcomes. For example, the Pathology group identified the problem of millennials …