THE BENEFITS OF FINANCIAL PLANNING IN 2025

 It is a great opportunity to make it into a new year. There are plenty of people who did not make it. What does the new year promise to offer us? It offers a blanket cheque of abundance. Life is a series of choices and it is up to us to decide what we want. If we choose abundance and are committed towards creating it will manifest. Unfortunately many time we do the contrary to our goals and aspirations. We have the power to realize our God given potential if we believe in it.  

Why is financial planning critical in the journey to financial advancement? It is because just like any area of life without planning we can never realize our potential. When one reads books about financial advancement, they all relate to planning. Very few people have altered their finances through wishful thinking. Finances play a critical role in our lives and we can never leave them to chance. A financial plan redirects our efforts towards managing our finances better and we are able to make responsible choices than previously.  A financial plan clarifies our financial objectives such as saving for retirement, buying a house and funding for educational expenses. It creates a road map to achieve financial goals. Come to think of it, how come even the most developed country in the world has a budget? It can afford to use its money recklessly but it has a budget. This is a pointer to the fact that since resources are scarce there is always a need to plan our expenses.

In a nation which is predominantly youth, it is critical that they are trained about financial planning. The youths are wired to spend without a budget because in most cases they are risk takers. It is easy for a group of youths to spend their funds on luxuries without first planning for their future. Not many youths take time to sit and make a budget for their finances. They spend without guided planning. One time  I met a university student who defended the fact that she did not require an account and she preferred to keep her money with her.  Now it is very tempting to use the money if it is not kept in a financial institution.

It is said that Warren Buffet who is one the wealthiest men in the world is frugal in his spending. This speaks volumes and we need to emulate his positive habits. During the festive season a number of people spend without limits and by January they are in financial deficits. What causes this financial situation is lack of financial planning.

HOW TO MAKE WISE USE OF OUR RESOURCES

1.Have a clear financial plan for the future

2.Save as you earn

3.Develop a budget

4.Seek financial mentorship

5.Create a budget

6.Research before you invest.

7.Have an accountability partner


Finances play a very critical role in our lives In the new year we can not afford to replicate our old and negative financial habits. We have the power to do better. This is why embracing financial planning is a wise move.

Phillip Kiryowa

Personal Finance Coach

Advanced Empowerment Link

0752615916

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