Most of us know how important it is to save money. But when it comes to doing it, people tend to fall into two categories: non-planners and planners. Non-planners tend to save when they can, putting in small bits to their savings account and hoping everything works out along the way. Planners know what they’re saving for, how much they need to put away, and how long it will take them to obtain their goals. Do you sound more like the first one? If so, you’re not alone. Just 33% of Americans have a financial plan in place. But it’s never too late to start! This blog will go over the value of financial planning and why you should have one in place!
Why Have a Financial Plan?
We get it. With the fast-paced life we’re all living, planning for things further than a few days in advance may seem like a headache. Does financial planning really make a difference? We think it does. Especially if you hope to accomplish big goals, such as buying a house. Below we’ll go over the top benefits financial planning offers you:
Helps You Accomplish your Goals
Financial planning can help you achieve your goals throughout all stages of your life. Whether you want to buy a home, save for your kids’ college, or live a fulfilling retirement, a financial plan will definitely help you accomplish your goals! The most commonly cited reason for not having a plan is “I don’t have enough money.” This is a common misconception. Planning in small steps doesn’t require large amounts of money to start. In fact, financial planning can greatly benefit lower-income households by helping improve saving and budgeting habits. A written plan helps people prioritize their goals and provide a way to measure success.
Increases Your Confidence
Having a financial plan not only increases the chances of you accomplishing your goals, but it also gives you more confidence in yourself. When you eliminate uncertainty from your life, you’ll be able to be more decisive. According to the 2021 Modern Wealth Survey, 65% of people with financial plans say they feel financially stable, while only 40% of those without one feel the same level of comfort. The survey also found that 54% of people with financial plans felt confident that they would reach their financial goals, while only 18% of non-planners felt that confidence. Confidence is a powerful tool, and those with it are more likely to make big things happen!
A Good Source of Motivation and Commitment
People aren’t often motivated when they don’t have any clear goals and don’t know what’s expected of them. A financial plan eliminates uncertainty around finances by prodigy clarity and pointing out what is needed from you. People are more likely to work toward a goal they know and understand.
When one has a clear call to action, ambiguity is no longer there to cloud your judgment. This allows you to make positive changes in your life! The longer you wait before taking action, the harder it is to do something. Motivation and commitment to goals are essential for accomplishing your goals. Whether you want to buy a home or save for the future, having a financial plan is one of the best things you can do for yourself. We hope this blog helps you see the value of financial planning. If buying a home is in your plans, Community Mortgage can help! We educate home buyers on how to make informed decisions and achieve their goals. Give us a call at (619) 692-3630 or click here for a free consultation.