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Immediately after we complete our college education, we automatically participate in a race call rat race.
Everyone started the race with a cart. In this cart, we have personal bills, loans and our allowance. As we are single, everything is good and manageable. We can spend what we earn without worry.
Then we meet our partners and get married. Thus we begin our next chapter in life. Our cart becomes heavier and we now worry about our spouse's bills and loans and kids allowance. Some of us must support our parents too. We may even need to bring our family to vocation. As we grow older, our carts get heavier and heavier.Do you have enough savings to meet these expenses?
As we know, life is never a straight and smooth path. We will encounter obstacles. Some of these obstacles may set us back in terms of our financial standing .If we do encounter a big obstacle (e.g. critical illness, operation, surgery, business failure) and need a huge sum of money to recover, Do you have enough money to meet this expense? What if the big obstacle results in us being permanently bed-ridden or out of work for a long time, what is going to happen to our cart? Do you have enough money to support yourself and family if that happens?
Many may say, well we have friends and relatives to turn to for help. But our friends and family have their own carts to pull too. If they help push our cart, who is going to push theirs?
We will all retire from work eventually. From then on till we all rest in peace, we do not have regular income but our life must still go on. We still need to pay our bills and we still need to eat.Do you have enough money to support yourself during retirement?
At old age, our body is no longer working as well as they used to. Our health conditions deteriorate, as we get older. We will need to seek medical help frequently. We may even need to employ a person to take good care of us.Do you have enough money to spend on these medical expenses?
So do you need Financial Planning? If you answer ‘Yes' to all the above questions, then you are safe and need not worry about Financial Planning. Otherwise, I suggest you start thinking about it.
The future is always uncertain, especially in today's global climate which spells uncertainty wherever you turn. Just look at the credit crunch crisis and you will know what I am talking about. Because people were not prepared for a turbulent future, many have suffered the consequences. This is the same for your finances and especially your retirement; where you want to have the security and financial comfort and not worry about anything else and have a good plan that will withstand the toughest of times. This article will spell out 3 reasons why financial planning and retirement planning is important.
Talking about retirement is something most of us do not want to do. It is understandable why we want to avoid the subject but the reality of the situation is that sometime in our lives we will have to realise that retirement itself brings with it, its own set of problems and potential disasters. Planning for your retirement is planning for your golden years - and it isn't just about crunching numbers. It is about looking at your lifestyle and tweaking your current finances and investments to reach goals and objectives for a comfortable future. No one must have to work after retirement - if anything else, it should be done willingly and just to pass the time.
Planning for retirement is good because it isn't just about planning for the years after working, it gives you a sense of comfort and security in the years following up to your retirement. It also gives you a firm idea of what your future will be like and gives you the freedom to pursue the things you always wanted to without worrying about taking a month of work or changing jobs to something easier and less competitive. It also puts less pressure on your family and your loved ones to take care of you because independence at an old age is very important to a lot of people.
Financial planning, especially at an early age can help to give your life focus and help you to achieve your goals in life. Financial planning gives you a set of tools to create wealth and build up a nest egg that you can use in case of emergency. Financial planning also gives you direction, direction you need to make informed decisions about investments so that you won't make any mistakes and you can reap the benefits for the rest of your life. There is the issue of safety in the matter, make your salary work twice as hard to provide for you and your family, plan your pension for the future and recruit the help of asset protection for that added touch of security.
Financial planning and retirement planning actually work hand in hand and are assets that must be invested in or at least considered in the course of anyone's life. Securing your future and making your money work for you are two valuable commodities for anyone - reasons why financial planning and retirement planning is important.