Studies and reports show that money is the number one source of stress for modern Americans, and it’s easy to understand why. Trying to keep one’s finances under control, plan for the future, prepare for big investments and purchases, and calculate budgets, all while attempting to live a happy, healthy, fulfilling life can feel like quite a challenge.
What’s more, with Americans having an average personal debt of over $90,000, it’s only natural that worries and concerns about one’s financial situation will arise. Fortunately, it doesn’t have to be this one. No matter your age or financial situation, there are steps that can be taken to get your finances under the control, typically with the help of professional financial planning experts.
With this in mind, let’s take a look at some of the key benefits of financial planning, looking at how it can improve your life in more ways than one, putting you in a better frame of mind, aiding your future development, and essentially giving you the freedom to lead a happier, better life all around.
1. Clarity and Peace of Mind
According to Park Place Financial, one of the most obvious and immediate benefits of reaching out to financial planning experts is for the clarity, peace of mind, and reassurance they can provide.
As stated above, money is a major reason for stress, fear, anxiety, and even depression in countless Americans. It can keep you up at night, interfere in your personal relationships, and ruin your mood on a regular basis.
Having a smart financial plan is one of the best strategies for dealing with this kind of stress. With your money under control and more confidence in your saving and spending decisions, you can feel like a real weight has been lifted from your shoulders, allowing you to get out and enjoy life to the fullest.
What’s more, this reduced stress can lead to a range of knock-on benefits too. Many people with less stress find that their relationships improve, they feel more confident in themselves, and they’re more free and able to enjoy their favorite activities without worries or fears getting in the way.
2. Proven Results
Another of the most obvious benefits of sensible financial planning is that it leaves you better prepared to deal with financial situations in the future. With a smart financial planning team by your side, you’ll be able to save money for retirement, payout less in taxes, build up a bigger college fund for your children, and so on.
Put simply, financial planning is able to literally make you a richer individual, with experts able to offer guidance, assistance, and recommendations regarding what to do with your money, how to invest, how to spend, how to save, etc.
Studies and reports show that those who make use of financial planners have more prosperous futures, yet 75% of Americans refuse financial advice or fail to seek out any financial assistance, subsequently finding themselves dealing with debt and difficulties later in life.
3. Motivation to Save
Often, a big part of financial planning involves setting goals or targets for individuals to aim for. This might be trying to build up a certain amount in your 401(k) before you reach retirement age, for example, or building up a bigger down payment for your first home purchase.
You might have smaller goals, such as simply reducing your monthly expenditures or setting some money aside for future emergencies. In either case, financial planning experts can help you set these targets and then give you the tools and guidance to reach them.
This typically results in great benefits for the individual, as people often feel more motivated and determined to save when they have a clear target to aim for and expert advice to keep in mind. So not only can financial planning reduce stress and inspire confidence, but it can also make you more motivated to build up a stronger financial future for yourself.
4. Avoiding the Traps
Many people turn to financial planning experts because they simply struggle to understand the world of finance. With all of its phrases, terminology, small print, and so on, it can be a confusing world, and the simple act of finding a loan or choosing which savings account you’d like to open can feel almost overwhelming at times.
With so much confusion, it’s easy to make mistakes or fall into common financial traps, such as choosing the wrong account, taking out a loan you aren’t able to repay, or making a bad financial decision that could affect your credit score or leave you dealing with additional debt for years to come.
Once again, financial planners can aid with this. They can guide you through the tricky terrain of the financial world, breaking down its complexities and simplifying the aspects you might not understand. They can help you develop a stronger knowledge and understanding of how finances work, giving you the tools and confidence to make smarter decisions with your money.
5. Escape Debt
Statistics regarding debt in the US make for grim reading, revealing that among all age groups, countless Americans are dealing with tens or even hundreds of thousands of dollars worth of debt. Having debt and trying to pay it off can feel almost impossible at times, contributing to stress, a lack of motivation, and other negative consequences.
Financial planners can help people escape from debt. They can show you where savings can be made, working with you to look at your accounts, incomes, and expenses in order to make smart, sensible decisions that won’t necessarily harm your quality of life but will put you in a stronger situation. With a financial planner by your side, even the greatest mountain of debt won’t feel so insurmountable.
It’s clear to see that financial planning can have serious benefits for any American. It can improve your quality of life, reduce stress, and help you turn your finances around, putting yourself in a much stronger situation for the future.