5 Benefits of Financial Planning

“If you don't take care of your money your money won't take care of you.” ― Mac Duke

Introduction

A common misconception is that earning income makes you a millionaire. The truth is without accurate financial planning, you’re millions won’t last long. Here, we talk about the importance and benefits of financial planning in not just maintaining but even growing your wealth.

These days, a luxurious lifestyle or day-to-day expenditure is accounted for on every paycheck. Based on one’s current salary, expenses and budgets are planned. However, in case of any change in earnings or an emergency, most people are not equipped for even a small contingency. This is one of the most important reasons a trustworthy financial planner in Dubai is of critical importance.

Even though pay packets are rising to new levels, savings and investments are at a much smaller incline. Most people don’t consider financial planning important, while for some, it seems overwhelming and difficult. To ensure your earnings are not just aiding you in the short-term but throughout your life, the expertise of a financial advisor in Dubai is a must.

The core aspects of financial planning will help you plan a suitable retirement strategy, reduce your tax burden, plan your finances for the long-term and prepare you for unexpected situations. Here are some of the top benefits of sound financial planning.

1. Mitigate Risk and Maximise Returns

Gauging risk isn’t always easy for everyone. When looking at the right health or life cover, a correct estimation is crucial for realising maximum benefits when required. Not only is it important that you have a sufficient cover, but it is also beneficial not to overpay your premiums for added savings. A professional financial planner in Dubai can help you appropriate the ideal cover for your needs ensuring you are secure without paying extra.

Along With mitigating risk with the right cover, financial planning can also help you maximise returns on your portfolio. A holistic approach will help you re-evaluate your portfolio and tailor them to your needs. This will help weed out any poor performing investments and instead invest money on profitable opportunities, thus boosting your overall ROI (Return On Investment). Additionally, the right financial advisor in Dubai can reduce your tax burden by taking advantage of high-performing tax-free schemes.

2. Boost Confidence and Reduce Stress

In looking towards the future, a lot of people are either confused about their savings or stressed about the expenditure. With financial planning, you can ensure a disciplined and profitable savings approach that can help reduce your stress. Financial planning helps remove ambiguity and instead offers clarity regarding your money. Your financial planner will be able to show you the actual growth of your investments as well as tweak any investment as per your goals.

Another source of stress for people when planning their finances is regarding their estate. With the aid of a trustable financial advisor in Dubai, you will be able to plan ahead for your estate distribution along with preparing a Will the right way to avoid any future disputes.

3. Achieve Your Goals and Objectives

A luxury car, villa, or even an exotic vacation – for many these are mainly dreams but for those who plan, these can be a reality. No matter what your goals are, the right financial planner in Dubai can help make them a reality with systematic planning and profitable investments.

By adopting a holistic view of your finances as well as your goals, your financial planner can create a customised plan for you that allows you to achieve your goals in a timely and comfortable manner. Additionally, a periodic review of the plans can enable the two of you to work together and evaluate if the plan is on track or if any modification is needed to take advantage of other opportune moments.

4. Live a Financially Secure Life

A lot of people plan to manage their finances but often are not disciplined enough to stick with the plan. By having a practical and forward-looking plan that allows for all your expenses while also saving for the future, you can continue to live a financially secure life.

Additionally, professional financial planning will help you be disciplined in your savings and investments thus cutting out any unnecessary or wasteful expenditure. With the right financial plan, you can indulge a bit now and then without worrying that you are overspending beyond your means.

For instance, Navin and Rihan were two friends that grew up together. However, Navin saw the merits of financial planning right from his first job and in consultation with a financial advisor was able to set up some investments based on his salary and objectives. Rihan, on the other hand, lived from month to month without a thought to his future.

After about 20 years, Navin had several investments that grew and allowed him over time to purchase a home and car while living comfortably. Rihan, however, was still living on rent and was extra shifts to make ends meet.

Thus, even though the two had similar lives and pay-packets, it was Navin’s planning that enabled him to live comfortably and achieve his objectives.

5. Retire Comfortably on Your Terms

Lack of financial planning may cause you to work even in your senior years to maintain your lifestyle. However, taking charge at a young age with a trustable financial planner in Dubai can allow you to retire sooner while living the life of your dreams. Along with focusing on your goals and requirements for the short-term, financial planning can help you secure your life for the next 20-30 years.

Here, instead of you working hard for every dirham, your financial planner can put your money to work for you. By planning at a younger age and investing your money in the right plan for you, your money can help earn you a comfortable life post-retirement. Not only does this offer you ease in the future but peace of mind in the present.

Conclusion

Financial planning may seem overwhelming but with the help of a professional, it can be an easy and joyous task. No longer do you have to wish for the luxurious things, but can actively plan to achieve them.


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Dr Rafiya Mushtaq is an experienced financial planner will be able to navigate through your requirements, obligations, goals and earnings and streamline a path that is perfect for you. Remember, by planning now, you can secure your future in your present!

To begin securing your future with a customised financial plan, connect with Rafiya today.