Question of the Day

There will be a financial literacy question posted every day of the month. Answer it and share what you "know." It could be the money question.

The question of the day:

Why is a financial plan so important? What can happen without one?

Posted 03.02.15 | Answer the question | 4 Comments

Answers

  1. Comment by Katherine Graham on 03.02.15 at 8:11 am

    A financial plan is important so you keep track of your spending. When you keep track of your spending, you’re more likely to have money to save/invest. If you don’t have a financial plan, you may not keep track of your money, therefore, you may spend more of it than you can really afford.

  2. Comment by Elizabeth Barske on 03.02.15 at 8:42 am

    Financial planning helps you to set short term and long term financial goals for your life. It helps you to map out where you are now, where you want to be, and how you will get there. Once you have that plan laid out, and you stick to it, it will be easier for you to make financial decisions and stay on track with where you want to go in life. It will also help you to set your limits of what you consider to be a good or bad investment for you throughout different stages in your life. Without a financial plan, it becomes very hard for you to make good financial decisions, especially long term financial decisions. It is beneficial for you to have a set of guidelines that can help you and keep you on track to financial success.

  3. Comment by Garrett Haag on 03.02.15 at 9:41 am

    A financial plan gives your financial life and in turn your lift a path to go down. If you dont have any plans or goals it will be hard for you to save and do everything in your power to do the best things for your finances. If you have a short term goal you are trying to achieve you may set aside a bond fund for that and keep feeding it until you have enough money in it to do whatever it is you wanted to with that money. On the other hand your portfolio as a whole should be used to achieve your long term financial goals such as retirement or buying a house. Whatever your goals are you need to set up a plan to achieve them, you wont achieve anything unless you try to.

  4. Comment by Mike Finley on 03.02.15 at 1:47 pm

    Great answers everyone. Let’s recap.

    (1) A financial plan provides you a blueprint for your future. I shows you a path that will help you achieve your goals.

    (2) No financial plan throws you out into the wilderness without a compass. Getting lost is easy when you don’t know where you are heading.

    (3) Take your dreams, right them down and make them your goals. Financial freedom may just follow.