FP Tip #01: Need For Financial Plan

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Have you ever wonder why Financial planning is important? For me, the thought of financial planning only stuck me recently and i realised that having a proper planning really makes a difference. Starting early in financial planning will allow you to reach your financial goals earlier.

Let me share with you on an article i have read.

Financial Planning is essential and almost everyone knows about it but not everyone understand the importance of it. Before we go into into details, let us look at the need for a financial plan to kick start with.

Let's assume on the following scenerio: On a daily basis, you seems to be doing a good job with managing your finance, clearing all credit cards and utilities bills on time with delay, meet your monthly expenses and might even have some spare cash for saving.

Given the above scenerio, it might seems like you have a complete and wonderful picture BUT have you thought of the under-mentioned:

1. Have you cater for any future major commitment?
2. Are you planning for your retirement?
3. Do you have any emergencies or unexpected funds that comes into your life? 

All these events will make a change in your life, that is why a financial plan come into the big picture.

Stay tuned for the next tip: How a plan can help?