A good deal of life can be distilled down to a foundational conflict between needs and wants. Needs are indispensable. Your everyday requirements; essentials defined by you, as per your lifestyle. The basic needs, as you already know, are food, clothing, shelter, healthcare and education. All of these needs are important and have to be met. Wants, on the other hand, go beyond needs, they are motivators, a life you desire. This could be anything you wish – a yearly family trip abroad, latest gadget, second home, diamonds or a futuristic trip to the Moon. 

To align your needs, wants and coveted lifestyle in place – should you define a financial plan for life? Should you bring on board a financial planner to help you make an informed decision? Is a financial plan only about the numbers that accounts your savings and expenses? A financial plan is more than that, it is your roadmap to an informed, smarter and reliable decision making. Financial plans are a framework that help you analyze your financial situation in real-time, discarding the whirlwind of emotions that tend to cloud our judgments. Should you engage in a financial plan before leaping into small or big decisions? Read on to find out. 

1. Big Dreams, Secure Decision

Long term goals and short-term goals, both are crucial to financial freedom. They each have their own importance and value in your financial journey. Financial planning aids in defining your goals through a wee view and panoramic view. Before you leap to make a decision, it can help you define your priorities and aid in an optimized distribution of resources.

2. Escaping Paycheck Addiction 

This may seem like a perfect time to quit your high paying salary job to get a head start on your own business. The reason alone is not enough. You need to ensure your daily expenditures as well as that of running a start-up are in place. Additionally you need to also secure an emergency corpus to meet unwanted expenses. Do you have enough cash flow to sustain it all? Moreover, have you considered the consequences of not having a month on month paycheck looking after your immediate needs? Do you have any liabilities that need immediate attention? A financial plan will help you factually analyze the right time to leave your job and chase your dreams.  

3.  Buy My Dream Home Or Continue Renting?

 A financial plan will help you weigh in your current financial standing and aid in rational decision making. By throwing light on facts that may end up getting overlooked. Are you equipped to buy the home, pay for ancillary expenses such as fixtures and furniture? Can you afford to keep your expenses in check in case of an unplanned emergency? Going beyond your means can lead to prolonged stress, ultimately robbing you of the ultimate joy.

4. The Right Time To Retire Is Now Or Later? 

Slow and sustainable lifestyle is the ultimate retirement goal. Before you hang your boots and call it a day, ask yourself and your finances – is it the right time? Have you saved enough to retire without any financial worries? Do you have enough savings to cover your retirement goals? Let your financial facts answer the question for you. This will help you define the right time to retire and break through the chains of fast paced life. 

Meta Description: A financial plan is like a GPS. You can traverse familiar roads with little or no help. But a GPS will help you route from one place to another. It will give you options to save you time from traffic, roadblocks and dead ends. Financial plans do the same. They route your destinations and money milestones with best options, ultimately driving you closer to the financial freedom you’ve always had on your mind.