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What Can Happen if You Have No Financial Plan?
Life has a habit of throwing us surprises such as the loss of a job, disability or even illness, all of which can have an impact. However, if you have an effective plan in place, it can help you to avoid financial ruin. If you don’t have a financial plan, what can happen?
You make decisions based on emotion
Whether you are investing as a business or an individual, if you don’t have a plan then you can often make decisions based on emotion. A plan is aimed at helping you to have a clear path to your goals, even when you are faced with problems. In fact, having a plan in place can even help to protect your finances should things take a turn for the worse.
You miss opportunities
With no plan often comes regret because having a plan can actually save you money and that can make it possible for you to do the things you want to do. You can expand your business, purchase a second property or send your children to university. An effective plan can help you deal with goals that you might not realise exist but could appear in the future.
Plan for retirement
We all face that time in our lives where our working life comes to an end and so, we need to plan beyond that. With no financial plan, you might find that your retirement fund is not sufficient enough which means you might have to work for longer. In contrast to this, the right plan could actually make it possible for you to retire early.
You might run out of money
As costs of living increase and the fact that people are living longer, you perhaps should plan your finances so that they last longer than you think. However, to deal with these increasing costs and to ensure that you are financially prepared for the future, you need a plan. You don’t want to run the risk of outliving your money and so, your plan should include a spending strategy, giving you an idea of how much you can spend during your retirement.
Nobody knows what the future might hold but we need to begin embracing the unknown now by creating a financial plan. In doing so, you will have the confidence to deal with everything that life might throw at you.