7 Key Benefits of Financial Planning

7 Key Benefits of Financial Planning

What is the Purpose of a Financial Plan?

Advantages of Having a Financial Plan

What are the advantages of having a financial plan? It gives you more confidence, not only for the unforeseeable future but also gives you the peace of mind that if anything happens, you know what to do next.  

Planning Philosophy 

Your financial security comes first. Life is full of ups and downs and you need to make sure that you have everything you need to be prepared for both. 
You need to find the best ways to pay down any debts, freeing your money up for other goals. Know where your dollars are going. You are paying for necessities but you also need to know the available amount of money that you have for your wants, for vacation, for a dream car, or for a new business.
Retirement and big-ticket items, like buying a home or starting a family, require saving strategies. You need to address each of your goals in detail so you will know how to achieve them. Make sure that your dollars are growing at a rate that is going to work for you. Your long-term plans and long-term goals should be addressed.

Importance of Financial Planning for Your Future

Growth in income

It helps you grow your income. Even if you're a W2 employee, 1099 employee, or a business owner, you might be limited on the amount of money that you bring in. Financial planning makes sure to take a 12,000 feet view of where the money is coming from and where it is going. Whether you are overspending or over funding, financial planning will take those extra dollars and funnel them to another activity that you might have been neglecting for years. 

Cash flow growth

Once the money is in your bank account where does it go? Sometimes when we break a hundred-dollar bill, by the end of the day, it's just gone. You don't know where it went. The same thing with your bank account, you have automated bills that you are not looking at. You don't know what you are paying for. Sometimes, people pay for subscriptions they don't need. Most of the time, we are just burning money instead of finding what is the problem. Financial planning will allow you to find that problem.

Secure the Future of your Family

Build security for your family and your future. We are our biggest assets. It’s our ability to generate income and generate money whether to our own business or employment. It’s the foundation for everything that we want to do in the future. What are we gonna do when we get hurt or sick and can’t work? Or if we have an untimely passing? What if something happens to us that we need care? We have to plan for when it happens. 

Investments & Asset Creation

With family planning, we can make sure that we focus on placing investments and asset creation. We create assets from our purchases, our investments, and our expenses as opposed to taking money from A and turning and moving into B. Make sure that the money from A generates enough to create a C over time.

Helps you be Prepared To Deal with the Unforeseeable

A financial plan helps you be prepared for the unforeseeable situation especially when you have to deal with either your family or business. In that case, when a situation happens you already know what to do. You have that checklist of the emergency backpack and you know what's in there and how to use it.

Achieve your long-term goals

Whether it is to grow your business, create a new one, buy a vacation home in Florida, or that villa in Tuscany, your financial plan will help you visualize that and engage you there.

Have a very Happy Retirement 

As business owners, we tend to not put our masks on. We are concerned about our employees, our clients but not our own future. Financial planning will allow you to make the decision whether you want to work or when you want to work. Planning for retirement will give you that financial independence of not having to do stuff and doing what you really care about whether it is charity, family, or even working for your community. Having a plan will help you get there in a quicker, easier, and better way.

Q&A with Candido

Q: People who were planning to retire prior to Covid, has that changed anything?

A: In the beginning, many people jumped off the boat and try to get off the market and move away from their accelerated plans. But now in the post-pandemic, it's pushing people. I have clients that are pushing retirement that we're scheduled to retire in 2022 and 2023 that are pushing it to 2025 and 2026 just because of the concern with the economy. Especially the tax code which we don't know what's going to happen by the end of the week and from Friday to Monday the whole proposed bill was completely changed so there are a lot of concerns but we help them navigate through those.


Our main thing is changing the idea: it's not IF”, it's When. We plan for what if,  but what we actually should plan for is when it happens. This is how a financial plan can help you have a safety net from the unexpected.


Candido Rodriguez

Candido is affiliated with Northwestern Mutual, a mutual company that has been around for over 167 years helping customers through difficult times by identifying and setting their financial goals. Candido makes a plan to align and achieve your dreams and aspirations by taking a personalized approach. He develops a plan that is flexible and is sure to work in favor of his clients’ needs.

Get to know Candido Rodriguez more! 

Recommended Readings: 

  • Why Is It Important To Have a Financial Plan?
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