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Importance of personal financial planning – Top tips to secure your future


Jan 11, 2023

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It’s never too late to start personal financial planning. You can safeguard your financial future and live worry-free by following a few simple suggestions. Regardless of your income, working with a financial planner to plan your personal finances will help you save for the future, prepare for a rainy day, and work towards achieving your big or small dreams. Before getting into the importance of personal financial planning, let our DNBC Financial Group’s experts help you understand what it means.

Importance of personal financial planning - Top tips to secure your future

Importance of personal financial planning – Top tips to secure your future

What is a personal financial plan?

According to Investopedia, personal finance is “a term that covers money management, saving, and investing.”

It includes financial planning for retirement, banking, insurance, mortgages, investments, and taxes. Personal financial planning considers potential risks and life events in order to mentally and financially prepare for them.

The term “personal finance” can also refer to the financial planning industry and institutions that provide financial services to individuals.

What are the benefits of financial planning?

There are countless reasonable advantages to financial planning. It helps you to:

Increase your savings

Saving money without a financial plan may be possible. However, it may not be the most effective method. When you make a financial plan, you gain a lot of insight into your income and expenses. You can track and reduce your costs consciously. In the long run, this automatically raises your savings.

If you’re looking for a service to help you manage and track details of your expenses easily, DNBCnet online payment app is an ideal choice. Moreover, when you want to buy something from different countries and need to pay the supplier in foreign currency, DNBC Financial Group will give you the best exchange rate as well as lower transaction charges.

Enjoy a higher standard of living

Most people believe that to pay their monthly bills and EMI repayments, they must sacrifice their standard of living. On the contrary, if you have a good financial plan, you will not have to sacrifice your lifestyle. It is possible to achieve your objectives while living comfortably.

Be ready for emergencies

Putting together an emergency fund is an important part of financial planning. You must ensure that you have a fund equal to at least 6 months of your monthly salary. This way, you won’t have to worry about finding money in the event of a family emergency or job loss. The emergency fund can assist you in meeting a variety of expenses on time.

Maintain your peace of mind

You can cover your monthly expenses, invest in your future goals, and splurge on yourself and your family without worrying if you have enough money. Financial planning allows you to manage your money more effectively while also enjoying peace of mind. Don’t worry if you haven’t reached this point yet. If you follow the steps of financial planning, you will soon arrive at financial peace.

What is the main goal of personal financial planning?

The primary goal of personal financial planning is to implement a financial strategy. The financial objectives are as follows:

Wealth creation: For every individual, wealth creation will be a considerable financial goal. Everyone wants to accumulate wealth to live a better life in the future, such as purchasing their own home, car, and so on.

To meet emergencies: With good financial planning, one can set aside funds to meet emergencies such as job loss, family emergencies, and so on.

To maintain a higher standard of living in the community: Everyone wishes to maintain a higher standard of living in society. It is only possible if a solid financial plan is put in place ahead of time.

Education: It is critical to educate children; however, education is very expensive these days, and only a person with a proper financial plan can afford his child’s education.

Asset and liability management: Proper financial planning aids in the management of an individual’s assets and liabilities. It is essential to maintain a balance between assets and liabilities.

Individuals will prioritize different financial goals.

How to create successful personal financial planning?

Understand your current financial situation

This is the first step in financial planning because it provides you with a good sense of the state of your finances and opportunities for improvement.

Make a list of your financial objectives

What are the various financial goals I hope to achieve in my life? Put them on paper. Don’t be afraid to write down any goal because no goal is too small or too large. However, keep in mind that your objectives are specific.

Look at the different investment options

Implement the right plan

You must choose the best investment option based on your goals, age, risk tolerance, and investment amount. If you are unsure about which funds to include in your portfolio, you can consult with a personal financial advisor.

Review your financial plan regularly

The financial planning process doesn’t end when you invest your money. You should also keep a close eye on how the funds are performing on a regular basis. If they don’t perform well, you may need to put them back with funds that do. You must also stick to your plan because your goals and dreams change as you age.

About DNBC Financial Group

Founded in 2017 as a payment service provider, DNBC Financial Group, offers digital payment solutions, such as money transfers and foreign exchange globally. This enables clients to use the global markets ecosystem to achieve their business objectives through a single, dependable partner.

Note: The content in this article is for general informative purposes only. You should conduct your own research or ask for specialist advice before making any financial decisions. All information in this article is current as of the date of publication, and DNBC Financial Group reserves the right to modify, add, or remove any information. We don’t provide any express or implied representations, warranties, or guarantees regarding the accuracy, completeness, or currency of the content within this publication.