How to get your financial life in order?

05/14/2021

The consequences of the corona virus are felt everywhere. Think of lower economic growth, higher national debt, more bankruptcies and rising unemployment as a result. Does the corona crisis also affect you? Have a clear and personal financial plan to be well prepared for any situation.

Below you will find five reasons for having (or making) a good financial plan. A financial advisor is happy to help you with this.

A good financial plan gives you financial peace of mind

  • A financial plan helps you organize your income, expenses, assets and debts
  • A financial plan helps you to achieve your personal financial wishes and goals
  • With a solid financial plan you protect your next of kin financially
  • Financial planning prepares you for financial emergencies

Financial peace of mind

One of the most important features of a financial plan is that it provides financial peace of mind. It prevents you from lying awake from your finances and thus also contributes to your mental and physical health. A good financial plan gives you certainty whether you have enough money now and in the future to provide for yourself and your loved ones. You also know that you are properly insured against the financial consequences of, for example, incapacity for work, dismissal or divorce.

Well organised

Financial peace of mind starts with financial insight and overview. With a financial plan you have an overview of your total income, expenses, assets and liabilities plus all financial products that you have taken out in the past. This immediately puts an end to those dusty shoe boxes and folders. A good financial plan also helps you to select suitable financial products for you. These are those products that match your wishes, goals and dreams, your financial position, experience and your risk appetite. The unsuitable products can then be terminated, which can result in attractive savings.

Realise goals

Financial planning helps you to look ahead financially. You determine your wishes, goals and dreams for now and the future and you adjust your finances accordingly. In addition, you check a number of times a year whether you are still on track to achieve your future goals. From now on you will make financial decisions with the end in sight: achieving your wishes and goals.

Surviving relatives financially protected

Many find it important that in the event of death they leave their partner and any children well cared for financially. In particular, that they can continue to live in the house and continue to provide the desired livelihood. A solid financial plan makes it clear whether this is the case and, if not, how to solve it.

Prepared for financial emergencies

A financial plan ensures that you always have a financial buffer. How high this buffer should be depends on your specific situation. Advice for households is to let this be three to six net monthly salaries. The buffer is there to absorb unexpected costs, such as a broken washing machine. Or other calamities, such as temporarily less income due to the corona crisis. In addition, this way you prevent that if things go wrong, you use money that is intended to achieve your life goals.

 Do you want to experience how financial planning can help? Then do not hesitate to contact us for a no-obligation conversation: info@expatwealthatwork.com