Why is Financial Planning so Important?

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February 3, 2020

Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet them.

The future is frankly, unpredictable. No matter how hard we try to prepare for what could be coming, we cannot know exactly what’s in store. However, what you can do is to ready yourself for it with the best of your abilities. We all have our own goals, desires and objectives that we dream to fulfil in the future.

Financial planning creates an ongoing process that will reduce your stress about managing money, support your current needs, and start to build the foundations for your retirement.

Financial planning is a strategy to achieve your life’s objectives through meticulous management of your assets. There are many aspects of financial planning that you should take into consideration, this blog post will talk you through these different areas:

• Managing your income, expenses & savings

• Investing in your future

Financial planning for your retirement

Managing your income, expenses & savings

Income- Managing your income, expenses and savings can seem like an easy and often overlooked task, but proper financial planning allows you to become aware of how much you earn from your salary, interest earned and other additional investments.

Financial planning aids you in properly monitoring your income source and growing it further. It lets your money work for you. With careful analysis of your current spending patterns and budgeting, we can easily identify areas that require more of your attention.

This could be prioritisation of expenditure and can significantly help you to monitor your cash flow, cut out any unnecessary expenses, subsequently building your overall capital.

Expenses- It’s good practice to identify the main areas that you’re spending money, be it on basic needs, wants or splurges on luxuries. Even if you spend more in one month, you will know how much to cut back in the following months so that you stay within budget. We can appreciate that your spending habits will differ as your lifestyle changes and you become older.

Savings- We all have big dreams of making monthly savings, money that we squirrel away for a rainy day or to put towards something bigger. Some objectives are very crucial in our lives. Be it to buy property, put towards the education and marriage of your children, to travel or to give you the retirement you’ve worked so hard for.  

Ai Investment Group work alongside  you to assess whether you’re within budget or overspending. This will help you understand your savings rate, how much you need to put away to reach your goals and how quickly you will be able to get there.

Saving your money is great, but dormant money can always be put to better use. We can work with you to look for opportunities to invest, maximise your assets and advise you when it comes to managing your wealth.

Investing in your future

Many are wary of the word ‘investment’, which is rightly so. Investing can be full of high risks.

It’s important to choose the right investments as per your income capacity, your hunger for risk and your overall financial goals. To make a worthwhile and profitable investment there is a lot to learn before putting any of your capital on the line.

Whether you’re looking to diversify your assets across different portfolios like real estate investing or are beginning to consider your financial options in retirement and pensions there are going to be risks and rewards.

Ai Investment Group works with you to build out your investment portfolio by taking into consideration personal circumstances, risk appetite, and future objectives. We then guide you to select the right investment that suits perfectly with your requirements, objectives, and personality to help you plan and create financial assets for the future.

Financial planning for your retirement

We all aspire to have a carefree, relaxed retirement, to fulfil our travel dreams or spend more time with the family at home. What if we told you that it’s all in reach?

But only if you start planning your finances as soon as possible.  

Retirement planning can be a daunting task, but we understand that you won’t be working forever and that should be something for you to look forward to. The decisions you make for your retirement today will determine your future. At Ai InvestmentGroup, we create custom strategies to position you well for all unforeseen changes or challenges ahead.

While fulfilling your family responsibilities and professional duties, it’s important to plan for your life after retirement. Financial planning helps you generate enough wealth for a happy retirement, you need to plan today for a better and brighter tomorrow.

For most people, when you retire, your pension becomes your main source of income. It’s how you pay for bills, your mortgage and other necessities.

However, part of retiring is enjoying your time post-employment. You want your money to be yours and to spend it in ways you have always dreamed of. It’s important to manage your wealth correctly and in a timely manner before it’s too late for you to be able to do this.