The Importance of Bigger-Picture Financial Planning
As true as it is that the best form of financial planning you can do is that which stems from something like creating a budget once you have a good idea of what you spend your money on and how you spend it, the ultimate in financial planning is that which takes into account the bigger picture. Yes, this so-called bigger picture can take a bit of a while to form properly, but it’s only a matter of time over which a real effort to uncover it should be made.
Of course, I am talking about the family finances by way of your planning, but I guess this can also be applied in the business world, for those who have chosen that route and are perhaps operating as entrepreneurs or self-employed individuals.
What is bigger-picture financial planning?
As the phrase suggests, bigger-picture financial planning is an approach to your financial planning which takes into account the overall, bigger-picture as opposed to focussing on specific areas of your finances in isolation. For example, this might include taking out a life insurance policy or planning for retirement. These can be tricky to plan for without knowledge but if you potentially go to sites or speak to an insurance broker in person then it could be easy to find out all the relevant information you need. It might come across as a bit obvious, but when you actually look at the typical manner in which the average person handles their finances it becomes apparent that the focus of one’s attention can be lost to unnecessary pursuits.
When it comes to bigger-picture financial planning, one aspect that is often overlooked is preparing for unexpected life events, such as the need for long-term care. For instance, you or someone you love may find themselves requiring the help of a home care agency in the future. Planning for such scenarios involves understanding the potential costs and incorporating them into your financial strategies.
However, if your life pattern follows that of someone who just about lives paycheque to paycheque, it can be difficult to look beyond the here and now of the bills you have to pay and the expenses you have to manage, so that you can see the bigger picture. For example, why is it that over a specific period of time like perhaps the festive season, your budget seems to take a bit of strain as a result of the obligation you feel to have to spend more on things like gifts, holidays and other indulgences? It’s because you’re not looking out far enough into the future…
Start NOW!
The key to mastering bigger-picture financial planning is to start right now, right where you are. Many businesses already do this for long-term sustainability and may use sites like https://www.finlync.com/solutions/cash-flow-forecast-software/ to predict their future circumstances based on continued stability and growth. Sure, as is the case with the life of a typical working-class individual, your personal and family financial situation probably coincides quite closely with the market conditions, so there will inevitably be peaks and troughs as far as the situation goes.
You cannot spend your whole life navigating those peaks and troughs and barely making it to remain financially intact. Rather, what you should aim to do is make gains with the passage of time, regardless of which phase of the market conditions you’ve just come through. This is something a financial advisor can help you with. Professionals from the finance industry generally tend to have a better idea about different ways you can save without hampering or supressing your day-to-day needs. They’re aware of market trends and techniques (old and new) that can majorly assist with developing financial health. Finding one isn’t too hard either. The first and simplest option would be to conduct an online search. That way you’d have an idea of all your different options. Another way to get in touch with such professionals is by attending seminars hosted by finance companies with assistance of financial marketers (you can visit this site for an example). These conferences can give you the opportunity to get answers to your financial questions, and maybe, to even find a suitable advisor for yourself. After that, once you’ve hired the right professional, they can begin helping you plan for long term investments and bigger-picture financial planning.
It starts with implementing the bigger-picture approach in your everyday spending decisions, and to go back to the example of your obligation to purchase gifts, how about something like resolving to stick to birthday gifts under $50, regardless of who you’re buying the gift for? Of course this figure you settle on depends on just what you can really afford to spend, taking into account the bigger picture, for example, if you have 10 people for whom you must buy birthday gifts annually, then you know from the get-go that you’ll need to stick to gifts under $50 per person if you’re to stick to your annual $500 gifting treasury.
Use the bigger-picture approach in all aspects of your life. Avoid opting for products that have to be bought over and over again when there are permanent options available. For example, cut out disposable razors and buy a durable safety razor or straight razor, it’ll cut down costs in the lost run. Check out www.getrazoradvice.com for some great buyers guides.