The Importance of Financial Planning
July 25th, 2008
Too many people live paycheck to paycheck. However, with a little bit of financial planning, you can improve your financial situation in a big way. We learned from Ed, a financial planner who has been in this industry for 11 years, that without proper financial planning, it is hard to work towards a goal and achieve any financial goal. After all, you can say, I want to have $50k by next year but how are you going to achieve that? That’s why financial planning is very important. First you have to know your financial goal, and then you can work with a financial planner to come up with a plan to achieve that financial goal. Financial planning is very important.
The $50K question is back!
We asked our readers again, what would they do if they had $50k today and one of our readers said:
“If I had $50,000 I would pay off my credit card debt of $30,000, pay off the remainder of my husbands student loan of $10,000, and pay off the remainder owed on my car of $10,000. I would pay off the credit cards and school loan to eliminate the monthly interest charges. Since the interest has already been added in to the car loan there would be no savings of interest by paying it off, but I would pay it off because that would free up my income for savings.”
Wow, this reader has definitely been paying attention. She has a specific plan for the $50,000 and she has some financial knowledge. She doesn’t just want to pay off debt, she knows exactly what debts she is going to pay off first.
We also thank Ed today for his wisdom in financial planning and how he drilled into us the importance of financial planning.
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Tags: 50k, finaicial planner, financial, Financial Planning, financial plans, pay off debt, what to do with $50k