Why Starting Early with Financial Planning Is A Good Idea

For many people, financial planning is something that should be considered when one is about to retire. However, the truth is the earlieryou develop a financial plan for your future, the easier it will be to accomplish your goals.

Whether you have just started a new job, planning to buy a home, or want to start your family, you will encounter financial circumstances that demand consulting a financial planner for direction and objective recommendation. Here are a few reasons why starting early with financial planning is a good idea.

Just like savings can compound, so can mistakes:

You may have to take many critical financial decisions in your early adult years, such as buying life insurance, buying a house and starting to save for retirement. Not having a clear insight of your requirements and financial abilities can force you to make errors that have long-term consequences, such as not saving enough for long-term goals, buying a home you cannot afford, saving in the wrong type of account, or accruing the wrong type of debt.

You can be flexible in your career & life later on by working towards financial stability early on. Many people often don’t know exactly what their career path will be when they start. One day you may wish to change your profession or perhaps decide to start your own business. Having a safety net gives you the flexibility required for a career change, and it also takes the pressure off of saving for retirement afterward in life.

Avoiding unwanted debt is important to goal accomplishment:

By comprehending what you can pay for & how you can pay for it, whether it is a car, a house or a hobby, you can steer clear of taking too much debt. Some poor decisions made early in life can push you to a debt cycle that you may find hard to get out of.

Set some fine financial examples for your kids:

Kids learn many of their life lessons from their parents, including money matters. If you are not organized with your finances or have anxiety around money, your kids are likely to grow in the same manner. However, if you can teach them how to save, how to approach money responsibly and how to be organized with their finances, they are more likelyto be financially stable.

You don’t have much spare time:

There is nearly endless information associated with personal finances accessible online, and you perhaps could get all the answers you require via some careful searches. However, teaming up with a financial planner can free you of the time that you would take to search through blogs, articles, the IRS website, savings calculators, budgeting suggestions, etc.…, and help you focus your energy and money on the tactics that are suitable for you. This allows you to spend more time with your family and friends, concentrate on your career and follow your non-financial interests.

Author bio:

Sunil Chugh – Certified Financial Planner in Mississauga helping clients with their financial planning needs.

Disclaimer: The information in this commentary is for informational purposes only and not meant to be personalized investment advice. Please contact your investment professional for investment advice and before investing in any product. ACPI does not publish market research and Sunil Chugh is not registered as a research analyst. The content is from sources believed to be accurate and the opinions expressed are those of the author and do not necessarily represent those of ACPI

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Created on Oct 21st 2019 23:06. Viewed 347 times.

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