Importance of financial planning:specially if your income is limited

I am sure you have seen several of those days when at one time the weather was sunny, and most people you came across wore a nice smile. You were going out with a jumper, but you said to yourself, ' oh what a beautiful day! I do not need a jumper. Then what happened is next? You went out, singing heartily to yourself, and when you were far from home, the weather changed all of a sudden. The sky turned sullen grey; you began feeling cold, your hands began to turn into ice really bad, they hurt. This is very typical of the English weather? Isn't it?

Interestingly, a lot of us treat our finances just as we deal with the weather. We forget that in life lack has more or less the same chance to exist as abundance. A future worth looking forward to is one that has been to some extent mapped out. Have you ever had the knowedge of dashing to your room from the kitchen to fetch something, and just on the way having you be prompt switched briefly to something else, you got into your room, and you found yourself for a moment picking something else instead, and then instantly recalling: ' Oh no, this is not what I came here for!' That's what you get when you lose focus.

To guarantee the achievement of your short, medium and long-term financial objectives, you don't only have to plan your savings and investments, but you also have to establish and sustain focus. This is because life's circumstances can change really fast, normally without warning, and a well-focused individual will be better placed to identify any changes promptly enough, to effect any necessary changes to financial plans, geared at attaining financial goals.

You may be asking: what have I got to do with investment and savings when I can't even make ends meet? This is normally the excuse of many for not getting involved with anything to do with savings and investments. My wages are not high enough for me to start thinking about investments; they would say. But think about it for a moment, who needs savings and investments the most? The man who is scraping a living or the man who has already made it? It should be the poor man. It is a very sick person who needs to see a doctor to take a prescription for medication. A healthy person probably needs to only by choice take some supplements to help keep him or her in good shape. This is the position occupied by the affluent as regards savings and investments.

Then you finally investing is to take a certain amount of risk , with the hope of obtaining some returns on the principal invested. Think about it, it is the one who lacks, who should be under more pressure to gain returns to better his/her social life. It might interest you to know that there are savings/investments like Individual Savings Accounts(ISAs) that has a lot of tax relief benefits and do not need colossal amounts of money to start. Begin now;plan your savings and investments towards a rainy day.