“If you fail to plan, you are planning to fail.” This applies to every aspect of life including finances. We sometimes think that we will face the situation when it arises but the reality is there is not much to do at that time. It is wiser to dig the well before you are thirsty. It is a good idea to plan and prepare for common emergency situations like loss of income or medical situations etc which are out of our control. Everyone is prone to risks like loss of life, burglary and natural calamities. The loss cannot always be compensated completely with money, but it sure helps.
Why planning for personal financial development
It does not always have to be the bad things that you plan for. There are motivating goals like wedding, child education, buying your dream home or going for an exotic vacation. Those who do not have such goals still need to plan for their retirement. It is a known fact that after a certain age, the income goes down but the expenses go up due to inflation. With a little planning, you can have enough money coming in to maintain your lifestyle even after you retire.
Succession planning is often mistakenly considered to be an activity for the elderly. The bitter truth is that no one knows the span of their lives. It is better to let the world know to whom your possessions belong to when you are no more. It saves a lot of hassles later and your hard-earned money stays with someone you choose.
Here are three action steps for your personal financial development
1. Those who plan their finances well, almost always have the money they need, when they need it. So, plan carefully.
2. Plan for motivating goals like wedding, vacation, buying a house etc.
3. All it takes is some care and discipline and very soon the finances start taking care of themselves.
Nevertheless, please feel free to check out the link below to know more about Leadership, Business investment, career coaching, Entrepreneurship and Work Life Balance.
DNA of HappYness: 30 Minutes Success Strategy for a Better Work Life Balance – Ruth Dorsainville