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Would you ever embark on a long
journey without a map leading to your destination or even knowing
what your destination is? The same concept applies to your financial
situation. Indeed, you wouldn’t want to invest without and idea of
your long-term goals.
The fact is anyone who has a dream or
goal will benefit from a financial plan. That’s because a financial
plan serves as a roadmap to your destination. It helps you identify
and clarify your dreams and goals, and shows you how you can take
specific steps to achieve your goals. More important, a financial
plan can help uncover unforeseen obstacles that could threaten your
financial well-being.
Financial planning provides direction
and meaning to your financial decisions. It allows you to understand
how each financial decision you make affects other areas of your
financial life. For example, buying a particular investment product
might help you pay off your mortgage faster or it might delay your
retirement significantly. By viewing each financial decision as part
of a whole, you can consider its short and long-term effects on your
life goals. You can also adapt more easily to life changes and feel
more secure that your goals are on track.
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