Is your investment plan independent of other financial decisions? Most of us fear that a financial plan will put a strict budget in place and squeeze every rupee into an investment. In reality, it safeguards your financial goals. Here are three compelling reasons to have a financial plan.
1. Financial Goals Are Near
Many of us transition through major milestones like starting a family, supporting elders, retiring, changing careers, or becoming homeowners. Without a budget or financial plan, our investment choices may lack structure and may not deliver on expectations. Milestones become financial goals. Being prepared financially for them could smoothen the ride.
2. Your Investment Matters
The easiest way to take every investment count is to have a financial plan. This will ensure that your affairs are in order and that you have a clear plan of action. A financial plan is eye-opening. Your budget could be liberating instead of restricting and your financial goals will remain at the forefront. A financial plan enables an investment habit that is centered around your financial goals.
3. Financial Freedom
Many times, personal choices are dictated by the financial situation. For instance, a budget may restrict travel plans or remuneration may limit career options. Financial freedom is the ability to make responsible choices without worrying about financial goals. A financial plan facilitates exactly this by making every investment work to the vision of your financial goals and instilling discipline in the investment process.
If you don’t have a financial plan in place, now is the time to get one!