Financial Planning Is Needed For Financial Independence
Everyone is concerned with financial planning and how it relates to financial independence. You have the choice to accept the subject and deal with it. You may choose to disregard the subject and continue to live in financial ruin. If you’re ready to get started, let’s start with some interesting details that everyone should be aware of when preparing their finances. For example, did you know that when the Social Security Administration was first established in the 1930s to take care of all of us when we retire, there were 40 people working for every individual receiving benefits? In 2009, there were approximately three people paying into the system for every one person receiving benefits, and that number is expected to drop to two people paying into the system for every one receiving benefits very soon! Because of this, it’s a good idea to pretend that social security isn’t going to be your retirement dream come true. Assume that you will need to be financially prepared for retirement, and that receiving maximum social security payments will be the cherry on top of the retirement cake you have baked for yourself! If you can retire without relying on social security, your financial independence would be even more rewarding. Of course, if the service is available to you, take advantage of it! Interested readers can find more information about them at E.A. Buck Financial Services – Greenwood Village Financial Planning
“By failing to prepare, you are planning to fail,” said Ben Franklin. So many of us go through life without ever considering some kind of strategy, financial or otherwise! Of course, if you decide not to prepare, It IS ALSO A PLAN! It’s not a great plan, but it’s a plan nonetheless. In your search for financial independence, this lack of true financial planning will come back to haunt you.
So, what is Financial Planning, exactly? I’m glad you asked because the answer is complex and encompasses all of the stages of life you’ll go through. Budgeting and cash flow, school support for you and your family, pension planning, tax planning, insurance planning, estate planning, and retirement planning are all sub-plans. Because of the difficulty of some of these definitions, people also seek professional assistance. A individual must also consider how a financial decision in one area of the master plan affects the other areas of the plan, as well as the implications. The sound financial preparation of these different organisations would be the foundation of your absolute financial independence.
An successful financial plan considers all of the above sub-plans as well as one’s lifestyle and resources. Patience and sacrifice are often needed as part of the overall plan in order to carry out a specific sub-plan. In addition, each sub-plan should include attainable objectives and, where applicable, a timetable for achieving these goals. Of course, a successful strategy would be adaptable enough to account for life events such as marriage, home ownership, and raising a family. The final thing to remember is that just because you spent the time and effort to write down your proposal does not guarantee that it will be carried out. To see your plans through, you must put in a lot of effort. The poor among us seem to “drop the ball” here. Allowing this to happen to you and your financial plans would jeopardise your financial independence.