The Importance of Financial Planning: 5 Benefits

We all know we should be financial goal setting and saving money, but it’s easy to push it to the side. Life moves at a fast pace and reaching financial goals won’t happen overnight. Achieving goals takes strategy and planning — it’s more of a marathon than a sprint.  

Here’s the good news: Once you understand the basics and importance of personal financial planning, working with a professional that understands your unique needs and goals is a good way to start off strong. A financial advisor can help you set and assess goals, avoid emotional investing, make recommendations based on your risk tolerance, monitor your progress, work with you on wealth management strategies and develop a comprehensive financial plan. 

Financial planning benefits you in many ways, helping you see the big picture of your life. Understanding the importance of financial planning early in life can help you become more strategic in how you save money. No matter your age, stage of life or level of wealth, creating a customized financial plan can put you on the path toward reaching financial goals and keeping up your financial health. Here are some reasons to start financial planning, no matter what stage of life you’re in. 

5 Benefits a Financial Plan Can Offer 

1. Financial Planning Identifies Gaps 

Through the financial planning process, you’ll discuss your current savings, income, investments, estate planning, insurance coverage and more with someone who’s looking out for your best interests. During these conversations, they’ll help you identify gaps in your current strategies and opportunities to maximize your goals. A crucial benefit of creating a plan is having a comprehensive view of your financial situation. When you can see the whole picture, it’s easier to see what’s missing. 

2. Financial Planning Helps You Stay on Track 

When life changes and you hit a bump on your financial roadmap, it’s easy to get distracted. Sticking to your financial strategy can keep you on track and avoid potential potholes on the path to reaching your short and long-term financial goals. 

3. Financial Planning Balances Different Priorities 

Long-term financial planning helps you prioritize and balance financial goals, like saving for a child’s college education, with putting money away for your retirement dreams. A good financial plan can help you navigate the choice between saving money for college or retirement, and understand how you might even be able to do both. 

4. Financial Planning Navigates Market Volatility 

The ups and downs of the market may leave you feeling uneasy. Headlines, social media and water cooler talk can leave you questioning your strategy. But a well-crafted financial plan is designed to help meet your financial goals and weather the highs and lows. 

With the help of a financial advisor, you can create a financial plan that boosts your confidence in your long-term strategy and helps you worry less about market downturns, emergency expenses, healthcare and long-term care costs — or outliving your retirement income. 

5. Financial Planning Reduces Stress 

Thinking about the future can be stressful, to say the least, especially when it comes to money. Will I have enough saved for retirement? How will I afford to send my children to college? Will I ever have enough money to travel the world? Once the doubt sets in, the questions begin to grow.  

That’s where a comprehensive written plan comes in, giving you a clear picture and direction for ways to reach your goals. With the whole picture in mind and a strategy in place, you’ll be more confident in your financial future. 

Whether you’ve dreamed of a retirement filled with traveling and relaxation, or you want to send your children or grandchild to college, you have big goals for your future that require thoughtful financial planning and preparation. Taking crucial steps now can help you reach the financial future you’re working hard to achieve. 

Develop Your Strategy

When you’re ready to sit down with a professional and dive into the financial planning process, connect with Farm Bureau to get started. Our team will take the time to get to know you and create a financial strategy that puts your needs and priorities first.