Why Is It Important To Have a Financial Plan?

Why Is It Important To Have a Financial Plan?

One of the most difficult duties for business owners is to sit down and take time to plan for their finances. They're too busy taking care of the employees, taking care of the clients, and they never pay attention to their own stuff and they tend to postpone it. By the time they realize things, they have probably amassed some assets, have some credit card debt, or already did their will, they already have a checking account in place, brokerage account, investments, etc. However, everything is fractured and centerless. 



Sadly, people can't see how a CPA can help them funnel some assets towards more tax advantages because most of what they do is set and forget.

Financial Advisors bring everything under a centered approach where you can see (from 12,000 feet) your finances as a whole. Not only thinking about what you should be doing today but how you can set up a “treasure box” and look into the future knowing that what you need is already there. 

How a Financial Plan Can Help You and Your Business To Grow

Why is a financial plan important to you and for your future?

Income Growth

By having a financial plan in place you are able to monitor your source of income properly. It also makes sure that your money is working for you while allowing it to multiply. Having an accurate planning can help you to not overpay but take the full position and control aspect of not only your personal income but other sources as well. 

Cash Flow Growth

It helps you with your cash flow growth. Naturally, we need to know not only where our money is coming from but also where it is going. Am I overpaying for my cell phone bill? Is my business overpaying for a benefit that nobody's using? Are we overbuying paper or are we buying paper at a higher cost? Making sure that we know how our cash flow works and having strategies like lines of credit and access to loans and fresh capital can help you grow your business and give you peace of mind at the end of the day.

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Securing the future of your family 

A financial plan will provide and secure the very critical aspects of your life because it is going to help you save for not only the unforeseeable but to save for the future. Mostly, when we're doing great in business, we're not taking the time to make sure that our family and their well-being are secured. A financial plan will make sure that we set the correct goals and our family is covered.

Investments and Asset Creation


With good investments and asset creation, a good financial plan covers your personal circumstances, your risks, and future objectives. It will guide you in selecting the right investments that will fit your requirement and that will match what you want for the future. It will give you a great sense of comfort and peace of mind knowing that the assets that you're building are growing. 

We always hear about receiving passive income or having something on the side. During the pandemic, many people turn their side hustles into their jobs. However, even if we're bringing in more revenue, how are we securing that revenue? Making sure that it either lasts or that we transfer it as a part of the legacy is important

Better Prepared to Deal with the Unforeseeable

Be prepared for the unforeseeable. A big example for the next century is the pandemic. Some people were prepared, some people were not. The government chipped in, however we still don't know the repercussions. There are thousands of homeowners who couldn't afford their rent and are waiting for some assistance. Having a financial plan helps you deal with that and helps you make sure that you don't go on a steep decline if something happens. It's imperative for your finances because that way you can make sure that whichever place you are in,  you are never stepping back. You are always gaining ground, never losing ground.

Achieve Your Long-term Goals

A written financial plan helps you visualize the future as you are not thinking of five, ten, or fifteen years of your life every day. You can sit on the weekend and start thinking about your goals whether it is changing careers, transitioning from a corporate job or from a business into another or even if it's a simple goal of moving to Europe or moving to South America, or travel the world. A financial plan can help identify those goals and make sure that you are on the right  track for all of them.

A Very Happy Retirement

A good financial plan will help you have a very happy retirement. After fulfilling all your responsibilities for your family, your employees, and your clients, you will want to have the time to be able to rest and do more for yourself.

By having a financial plan, your biggest fear of either running out of money or having to go back to work are taken care of and you can live a happy life.

For financial advisors like Candido, their idea of planning is to help you live today while planning for the future. 

See also: How To Retain More of What You Earn

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