Financial planning tends to overwhelm a lot of people. Many procrastinate on it until something big happens in their life, like transitioning jobs or a medical emergency. But you don’t have to do financial planning at those moments only. It’s essential throughout your life, no matter your salary or title.
Many have gone on to achieve their goals of buying their dream home, starting a family, and retiring comfortably because of financial planning.
In this article, learn about and explore why financial planning is crucial when you should consider consulting a financial planner and what important takeaways you should keep in mind.
Also read: How To Do Proper Financial Planning
Why is Financial Planning a Must?
Successful people don’t achieve their dreams by accident. They spent years diligently following a financial plan they created for themselves, meeting milestones along the way.
Financial planning is not exclusive to the well-off; everyone can benefit. Crises like a car accident or job cuts strike won’t hurt as much if you’ve considered it in your financial plan. And it can put you on the right track toward buying your dream home in the year you thought you would.
The benefits of financial planning are clear, but many people delay seeking professional help until they are involved with financial difficulties. However, waiting until a financial crisis can limit your options and make it harder to achieve your goals.
A financial planner early in your career will help you lay the foundation you need to succeed as you grow older and earn more.
When is the Right Time to Consult a Financial Planner?
There is no single answer to when the right time is to consult a financial planner. The decision to seek professional advice depends on your needs, goals, and financial situation.
However, several life events and milestones like the ones below should prompt you to consider working with a financial planner.
1. Before starting a family
Starting a family is no joke. As much as it can be a dream come true, the reality of money will inevitably drain a lot of its satisfaction. Bills, taxes, and tuitions are just the start. The hospital bills for your baby can already put a dent in your bank account if you didn’t plan for it.
A financial planner can aid you in making a budget, planning childcare expenses, and saving for your child’s future.
2. Between jobs
Before saying Yes to that shiny new job offer, pause. Consider what might happen with your new salary. A financial advisor can clear things up for you and help you judge whether a new role is worth taking since they’ll also consider your financial goals.
3. When you’re planning to retire
No one wants to struggle when they retire. Everyone wants a peaceful retirement filled with relaxing and spending time with the family. Unfortunately, these dream retirements don’t come easy. They need preparation.
Financial advisors will tell you what you can do to achieve a peaceful retirement.
4. Before starting a business
Starting a business can be exciting, albeit risky and complex. Since your business sinks without money, you should do everything you can to keep it flowing.
Financial advisors can suggest actions you can take to increase your capital and protect your money. They aren’t your business partners, though. Bigger-picture business decisions, like your branding and expansion, will still need to come from you.
5. When you’re receiving an inheritance
Getting an inheritance from a relative can be an emotional and overwhelming experience. Through a planner’s guidance, you can understand the tax implications, evaluate your investment options, and create a plan to preserve your wealth.
6. While managing debt
There’s nothing wrong with having debt since it can help you fund your necessities or your big purchases, like a minivan or a two-bedroom property. Problems only come about when you don’t manage them well.
Missing payments or loaning more than you can repay will cause you to sink faster into debt. Some have debt as a recurring, perpetual part of their lives. But others are able to completely eliminate it while they’re still young.
How can you pay it off, then? A financial advisor will help you figure that out. They’ll help you understand what steps you can take, from wherever you are in your life, to eliminate debt as fast as possible.
7. As you save for college
Saving for your child’s college education can be challenging. Still, a financial planner can help you create a plan to save for college and maximize your financial aid options.
Secure Your Financial Future with Professional Guidance
Partnering with a financial consultant can help you achieve monetary goals and safeguard your future. However, finding the right advisor who understands your unique needs and goals is vital.
When selecting a financial planner, choose the ones that align with your goals. Always double-check their credentials, experience, and fees to ensure that you’re working with someone trustworthy.
Ensure that you do proper research and look at more than one planner. This method lets you compare and go with the one best suited for you. Soon, you can watch your investments grow and be on your way to a more protected and comfortable future.