The Importance of Financial Planning: 5 Benefits

Sep 21, 2023 2 min read

Whether it’s at the forefront of our minds or in the background, saving money is one thing we know we should be doing. However, it’s easy to push it to the side. We know life moves at a fast pace and reaching financial goals won’t happen overnight. To achieve your goals, it takes strategy and planning – it can help to think of it as a marathon rather than a sprint. Once you understand the basics of personal financial planning, working with a professional that understands your unique needs and goals is a good way to start off strong. A financial advisor can help you set and assess goals, avoid emotional investing, make recommendations based on your risk tolerance, monitor your progress and develop a comprehensive financial plan.

Financial planning helps you see the big picture. A plan can help you become more strategic in your savings. No matter your age, stage of life or level of wealth, creating a customized financial plan can put you on the path toward reaching your financial goals and keeping up your financial health.

5 Benefits a Financial Plan Can Offer

  1. Identifies Gaps

Through the personal financial planning process, you’ll discuss your current savings, income, investments, insurance coverages and more. During these conversations, gaps in current strategies can be identified. A crucial benefit of creating a plan is having a comprehensive view of your financial situation. When you can see the whole picture, it’s easier to see what’s missing.

  1. Helps You Stay on Track

When life changes and you hit a bump on your financial roadmap, it’s easy to get off track. Sticking to your financial strategy can keep you on track and avoid potential potholes on the path to reaching your short and long-term financial goals.

  1. Balances Different Priorities

The power of long-term financial planning is the ability to prioritize and balance financial goals like saving for a child’s college education while also putting money away for your retirement dreams. A good financial plan can help you navigate the choice between saving money for college or retirement.

  1. Navigates Market Volatility

The ups and downs of the market may leave you feeling uneasy. Headlines and water cooler talk can leave you questioning your strategy, but a well-crafted financial plan is designed to help meet your financial goals and weather the highs and lows. With the help of a financial advisor, you can create a financial plan that boosts your confidence in your long-term strategy and helps you worry less about market downturns, emergency expenses, healthcare and long-term care costs, or outliving your retirement income.

  1. Reduces Stress

Thinking about the future can be stressful to say the least. Especially when it comes to money. Will I have enough saved for retirement? How will I afford to send my children to college? Will I ever have enough money to travel the world? Once the doubt sets in, the questions begin to grow. A comprehensive, written plan gives you a clear picture and direction for ways to reach your goals. With the whole picture in mind and a strategy in place, you’ll be more confident in your financial future. 

Investing in Your Financial Future

Whether you’ve dreamed of a retirement filled with traveling and relaxation, or you want to send your children or grandchild to college, you have big goals for your future that take planning and preparation. Taking crucial steps now can help you reach the financial future you’re working hard to achieve.

When you’re ready to sit down with a professional and dive into the financial planning process, connect with a Farm Bureau advisor to get started. Our advisors take the time to get to know you and work to develop a strategy that puts your needs and priorities first.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.