EVERYONE wants to reach a certain point of their financial status where they can live comfortably and not worry about their income the following day. Whether you are someone who works at the office or have your own business, each one has a financial goal they want to achieve.
However, that is easier said than done. Reaching our financial goals involves a lot of discipline and planning. I had a small chat with some financial advisers and they are in agreement that to be able to protect your income and reach your financial goals, you have to have a plan.
"Everyone needs to plan the future. More so, we plan for our financial welfare to achieve a better life and to improve our financial situation," Venus Montenegro said.
Emjay Llerena said having a plan serves as your blueprint to your financial future.
"A financial plan can help you avoid costly mistakes. It will help you make smarter decisions when your direction is to invest or for a better financial future. It can also insulate you from turbulence in the economy," Llerena said.
Avon Sinajon said without planning your finances ahead, coping up would be very difficult for you.
"At worst, your financial burden may be even passed to other people," she said.
Montenegro said when you start with your financial plan, you have to have a set of objectives.
"There can be different objectives why we plan ahead. It could be a retirement plan, an educational plan, a health plan, for a specific large future expense, an estate preservation or taxes or just simply an income continuation. Whatever the reason maybe, you plan because you wanted the future to be better," she said.
Identifying your objective is crucial so you can better identify why you need to do what you need to do.
For her part, Sinajon said you need to conduct a "financial reality" check.
"It is not good to plan for your future without assessing your current scenario... Ask yourself, how are my finances lately? Ask if your current income is able to support at least your basic needs-not wants," she said.
Sinajon added that one must evaluate their self to see how they are currently managing their money -- where it goes, what is your source, and who is being covered by it.
"The more you are honest about yourself as to how are you financially dealing today, the more it becomes clear what aspects of finances you need more attention to," Sinajon said.
She said you can start your financial planning by yourself or ask professional advisors for help.
"You can even check in Google for video tutorials or written guides. It all starts with acknowledging that there is a need for you to review your finances," Sinajon said.
With a financial plan, this can give you a peace of mind when thinking about your future.
"Nobody can ever replace the peace of mind and heart of a prepared individual. Once all of your finances are secured and prepared, you can always take control of your life. Because you are able to achieve financial freedom, you can devote more focus on other equally important things in life other than finances," Montenegro said.
Lastly, she said having a good financial plan can accelerate your savings.
"According to Zig Ziglar, a Goal that is properly planned is half-way reached. Thus, a well-informed individual will always make sure that he achieves his objective of keeping a healthy financial future," Montenegro said.
She added your financial plans allows you to focus on your objective and gives you're a clearer picture of how much you want to achieve, how you can achieve it and what way will you do to achieve it.
"Among the many people I have met and coached on, I always tell them that financial journey is a self - commitment. There are no shortcuts to achieving your financial dreams. If ever there is, it will not be as sustainable as it should be. Your financial journey begins not with having the money, but with having the right mindset," Sinajon said.