If we ever sit down and think about the money we’ll make during the course of our lifetime, odds are that the amazingly high numbers would stun us, but if compared to what we save, the numbers can bring us to shame. If your saving rate is below 5%, don’t worry, as you’re in line with all of the Americans who, according to a report, save less then 5% of their earnings and go into debt to pay any amount over $400 dollars. Its pathetic isn’t it?
Here comes the importance of having a financial plan to follow in your life. You can save a lot of money following a set of definite rules set by yourself. So, here are some benefits of having a financial plan. You can click here for more related information.
Let’s You Save More
While an average American only saves 5% or less of his earnings per year, the ones with financial plans ended up saving 10% or more. These people then use the saved money to invest in real estate, a small side business or simply keep their bank accounts stuffed with these dollars.
Helps Boost The Confidence
Everyone makes short and long term financial goals, but remember that a planner is more likely to realize his goal as compared to a non planner. That is because a planner knows his actual capability and makes realistic plans which suit his financial status, while non planners easily give up on their goals because they fail to devise a proper plan of earning and savings.
Makes Your Life Comfortable
Making your financial around what you actually have and are capable of, instead of dreaming about what you haven’t can bring peace and harmony to your life.
A huge benefit of having a financial plan is that you can use what you have, and plan/ save for what you plan to have in the upcoming years.