Financial planning can be done, financial plans can be put in action but even with all the planning, plans do go upside down very easily. Budgets and investments can be torn, and financial security can start to fade. All because the financial plans are not realistic. The more realistic a financial plan is the more likely it is to succeed. Mostly, the more that something wants to be accomplished the more the plan is going to be realistic. Desperation can cause irrational and illogical thinking and making things harder and harder to follow.
Divorce and suicide does depend on money a fair bit. Unfortunately, as much as it is said that it's because there was no financial plan, it's not. It's because of the unforeseen consequences of planning to the penny and then trailing off the financial plans. Financial plans don’t make the marriage or the life. The marriage and life make the financial plans. If in the middle of consequences of poor financial plans or the incidents that make financial plans fail, most throw in the towel and say that it’s over. There is no more financial planning and things just get worse as time goes on.
Planning for the future is really simple if a person knows what to look for. People have forgotten what is like to feel helpless and insecure about where the next meal is coming from. Luxuries actually have taken over what people see as the 'needs' instead of the 'wants'. Luxuries are nice, but when a person lives from pay to pay they can’t really afford the luxuries. Those luxuries are actually what causes the financial problems. There really is no money to put towards the bills and the rent or mortgage so when the calls from creditor’s start coming in then things are up in the air. Doubt starts and then creates more problems where bankruptcy seems to be the only way out.
Plan one year at a time. Look for the investments that will not lose money, i.e. a GIC. Over a years time you can make an extra 3-5% depending on what the GIC rate of interest is. The other thing that many people seem to forget now is that everyone should have a years worth of expenses saved just incase that unforeseen incident such as job lose, or severe injuries happens. Without that cushon there really is a scare about being able to buy the essentials. Most people don’t even need to save a years worth of expenses but still having a few months worth of expenses saved is better than the nothing that most individuals end up with. Making the financial horror that is avoided at all costs. The investments that don’t cost anything and money can’t be lost is a good idea in all. There is a lot that can be accomplished through investing and saving is one of them. Through investing you have savings and gain a higher interest rate than you would find in a conventional savings account.
Financial planning is a good thing but the other thing is that the financial plans need to be followed or else there really is no reason to plan. Without that planning we see the people on the street that are referred to as the working homeless. Why do people allow these things to affect their lives? They don't mean to, at some point they did have a financial plan and that plan didn't work for them. Because that plan didn't work for them they gave up. There are many different plans that can be used. If one doesn't work then go for another. Find the financial plan that works for you and your family. If you can’t find a financial plan that works then seeing a professional that can help build a budget around the money that you have is much better than letting everything fall apart.
