Ammad Awan Glasgow - Reasons Why We Need Financial Planning

Having a comfortable life is something everyone wants. Ammad Awan Glasgow sure that he also planned for a successful professional and personal life and have decided upon important goals in life like buying a house, getting your children educated and married, going on a foreign tour, etc.

However, have you started to carefully plan for it?

Without a well laid out plan, most of these dreams will have very little chance of getting fulfilled. All of these will require one common thing, i.e. money. So unless you manage your finances properly, the chances of fulfilling these goals will remain slim. Financial planning is what will help you to reach your life goals in style by helping you to manage your finances well.

This is somewhat similar to preparing for a vacation tour. If you plan well then you will reach your destination quickly and comfortably. Otherwise, you might end up on the wrong route the entire holiday will get spoilt. Similarly, without financial planning, you might end up wasting your money and jeopardizing your future.

Financial planning is what everyone needs, irrespective of their age, income, gender and country of residence. Unlike what many of us think, it is not a one-time activity. Instead, it is an ongoing process which has to be repeated at regular intervals to ensure that the plan that has been created is being followed and the decided milestones are being met.

Ammad Awan Glasgow says financial planning should be done only when you gather enough money to justify the activity. However, this is just another myth. You can start with a small amount and the sooner you start doing financial planning, the better it is. Achieving your life goals will require you to do careful planning and starting off with financial planning early in life will give you enough time to reach your goals comfortably.

Insurance planning:

Insurance is a must have protection for all of us. These days, the medical and hospital bills can easily run into lacs of Rupees and it can cause immense financial strain if someone in your family falls sick.

Similarly, if the earning member of the family expires, then there is a loss of income which can also jeopardize the financial stability of the family. Having a life insurance and a medical insurance can help you to tide over such crisis comfortably.

Financial planning will tell you how much insurance cover you need and what are the best insurance policies that you can look at.

Creation of an Emergency Fund:

Financial planning will also help you to build an emergency fund which will prove to be very handy should something go wrong. This emergency fund will help you to bridge the financial problems that you will face in the event of a sudden job loss or an unforeseen expenditure coming up. The thumb rule is that you should have an emergency fund which should be enough to cover 3 to 6 months of your household expenses comfortably.