Is Having a Sound Financial Plan Necessary?

Is Having a Sound Financial Plan Necessary?

Anything about “money” is not an easy topic to discuss as it has always been seen as a sensitive topic to touch. This is also why other people either avoid it or just shrug their shoulders when asked how they plan their finances. It has been said that we shouldn’t put all our eggs in one basket however, we all know that it is harder than it sounds.

During this time of the pandemic, uncertainties can bring anxiety in all aspects of our lives and it greatly affects the security of our finances. No one had foreseen the pandemic and its lasting effects on us, but I am pretty sure that it had brought regrets to people who failed to plan on their finances. I knew some people who sought help from different financial institutions to be granted a loan. Some were loans to help them get by daily, but some were used to consolidate debt. Truth be told, with or without the pandemic, having a sound financial plan is the best way to combat the uncertainties of tomorrow. Here in the Philippines, financial literacy is something that is good to have in school curriculums. Back in the days when I was still studying, I did not get to learn about financial literacy in a formal setup. I just had to learn from experience that budgeting is crucial if I would want to buy a decent lunch meal and get home safely through public transportation. Don’t get me wrong, I am still not the best at budgeting and handling my finances but I did get to learn a lot on why and how should I have a sound financial plan for myself. And here are some of the reasons why you need one as well.

It keeps your finances aligned with your financial goals.
I used to be in deep debt and it was a matter of time before I could give up and cry my eyes out not knowing how to get out of it. I learned to track my expenses using a spreadsheet and facing my debts one by one wasn’t a pretty sight. I had to be honest to myself that I need to know my enemy (expenses) in order to successfully conquer it. Spreadsheets must include all your expenses and you can put an automatic computation wherein you can already factor in the percentage interest given by your creditors. During this time, my goal was to finish all debts before the year ends, and keeping my finances tabulated on spreadsheets did the job! It was not easy but it was sure worth it!

It saves you for the rainy days.
One thing I learned from my journey of having a sound financial plan is that there are a lot of ways to execute it. Investing while still young is something I wished I could have learned back during my younger years but hey, we have to pick up the pace from where we are today. I am currently a licensed financial advisor and I could help you plan your expenses, placing them into the right products wherein you could get insurance for your protection, retirement, or even future child’s education – all can come with sound investment plans that while you hustle all throughout the years, your money would be hustling twice as you do. If you are living anywhere in the Philippines, you can reach me through Telegram, and let’s schedule a financial planning session. You can also do a debt consolidation to focus your payments on one creditor while keeping the interests at the bare minimum, you may also read here to learn more about debt consolidation.

You will thank yourself in the future.
Having sound financial planning is not actually for the now, but it is designed to be greatly helpful to you in the future. It may not be easy to follow a financial plan as you may need to impose certain strictness and you might also need to sacrifice buying some of your usuals in your shopping list. But whatever it is that you are planning for, would surely be met if your financial plan was done well. Looking back, I had made a lot of sacrifices during the time when I had to pay off my debts and I had felt every inch of that belt getting tighter and tighter. As I look back, I am really thankful that I did that. I am now wiser in my finances and I am now not afraid to invest more in my tomorrow.

A sound financial plan is difficult to follow but hey, we all wanted to not worry about money in the future, right? It’s not too late yet to invest in yourself. You can always start today!

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