Importance of financial planning
Financial planning is a layered concept that involves a range of activities that all work towards a common goal of improving your financial standing. It involves budgeting, saving, debt management, and investing, which are financial aspects that a lot of people may need assistance with from time to time. It is often said that if you fail to plan, you plan to fail; which is also the case when it comes to your finances. Financial planning acts as a guide and provides some sort of mind map towards achieving your financial goals. To get started, some people may require the assistance of a financial advisor who can provide unbiased feedback on your finances and advise accordingly regarding the most appropriate steps to take going forward.
Understanding the current financial climate, it is not surprising that people are paying extra attention to the saving and investment aspect of financial planning. The global conditions of 2020 highlighted the importance of better managing your finances and always being prepared for rainy seasons. Moreover, it has been reported that there is a growing interest in online trading because of how potentially lucrative it can be, therefore, enlisting the help of an industry professional would be beneficial if you are looking to get advice on forex trading.
Free tools you can use
The great thing about the digital era that we live in is that there are technological solutions for a lot of things, including your finances. The advent of technology and online platforms has led to the development of many apps and tools for various aspects of life, and there are also free tools that you can use for financial planning.
Categorized as a budgeting tool, Mint can be used to track your spending habits and provide an indication of how you are managing your finances. All you need to do is link your card/s to the account that you have created on the platform, which will then be tracked through Mint software. Mint allows you to set a budget, track your spending and expenses, as well as categorize them accordingly.
- Every Dollar
Another budgeting tool worth noting is Every Dollar, which is premised on the belief that every dollar you earn and save should be purposefully allocated. The free version allows you to set up a budget and then track your spending manually by noting your spending, as a way to make you more accountable. The paid version of Every Dollar, on the other hand, allows you to link your bank account and allow for your spending to be tracked.
As the name suggests, Savology is a saving tool that can tailor a financial plan for you within a matter of minutes, according to its description. The free-to-use platform first provides a financial profile survey for you to complete as a way to assess where you stand. This is then used to create your account with a personalized financial plan. Moreover, a financial wellness score will be given to you, so that you also get an understanding of how your saving efforts are going. Thereafter, recommended steps to take will then be presented to you for your implementation.