By Farm Bureau Financial Services on February 2, 2022

The Importance of Financial Planning

financial planning

Whether it’s at the forefront of our minds or in the background, we know the importance of saving money. However, it’s easy to push it to the side. We know life moves at a fast pace but reaching financial goals won’t happen overnight. Achieving your goals takes strategy and planning; it can help to think of it as a marathon rather than a sprint. Once you understand the basics of personal financial planning, working with a professional who understands your unique needs and goals is a good way to start off strong. A financial advisor can help you set and assess goals, avoid emotional investing, make recommendations based on your risk tolerance, monitor your progress and develop a comprehensive financial plan. 

Financial planning helps you see the big picture. A plan can help you become more strategic in your savings. No matter your age, stage of life or level of wealth, creating a customized financial plan can put you on the path toward reaching your financial goals and keeping up your financial health.

Benefits a Financial Plan Can Offer:

Identifies Gaps

Through the personal financial planning process, you’ll discuss your current savings, income, investments, insurance coverages and more. A crucial benefit of creating a plan is having a comprehensive view of your financial situation. When you can see the whole picture, it’s easier to see what’s missing. 

Helps You Stay on Track 

When life changes and you hit a bump on your financial roadmap, it’s easy to get off track. Sticking to your financial strategy can keep you on track and avoid potential potholes on the path to reaching your short- and long-term financial goals. 

Navigates Market Volatility 

The ups and downs of the market may leave you feeling uneasy. Headlines and water cooler talk can leave you questioning your strategy, but a well-crafted financial plan is designed to help meet your financial goals and weather the highs and lows. With the help of a financial advisor, you can create a financial plan that boosts your confidence in your long-term strategy and helps you worry less about market downturns, emergency expenses, healthcare and long-term care costs or outliving your retirement income. 

Reduces Stress

Thinking about the future can be stressful to say the least. “Will I have enough saved for retirement? How will I afford to send my children to college? Will I ever have enough money to travel the world?” Once the doubt sets in, the questions begin to grow. A comprehensive, written plan gives you a clear picture and direction for ways to reach your goals. With the whole picture in mind and a strategy in place, you’ll be more confident in your financial future. 

Whether you’ve dreamed of a retirement filled with traveling and relaxation, or you want to send your children or grandchildren to college, you have big goals for your future that take planning and preparation. Taking crucial steps now can help you reach the financial future you’re working hard to achieve. 

When you’re ready to sit down with a professional and dive into the financial planning process, connect with a Farm Bureau Financial Services advisor.

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