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Financial planning. You need it, and don’t think that you don’t. It’s not an option. Your financial future matters, and planning is never an option. Oh, you think you are doing it already because you manage and invest your money? Nope. That’s not what financial planning is. Planning for your safe and sound financial future means making everything you do financially work together with everything else. You need to understand the basics and beyond so that you are doing more than just handing everything over to the experts. Understanding comes first What do you know about financial planning? It’s time to find out by taking stock of our behaviors. Understand your spending How much do you spend and why? Is it interfering with your saving? You should be saving enough to meet your financial future, but most of us let spending get in the way of saving. Financial planning is about knowing what you have, how to use it wisely, and how to get what you need for now and in the future. Invest what you save Saving also involved more than just putting money away and not spending it. Invest your savings so that you can make them work. You need to know about the best ways to make your money work, and how to make the most of your taxes and benefits through financial planning. Taxes come with incentives that can help you save money, and tax breaks can help ensure that you are not spending unnecessarily. As for purchases, make them count. Invest wisely in real estate and in places that will give back more than what you put out. Manage your debts There are some good reasons to go into debt. A new car isn’t one of them, but a good education is. Don’t spend what you don’t have on a vacation, or a car, and don’t try to justify the necessity of either of those things by saying that they are good for you, and will make you more productive because, in the long run, they won’t. But if you need to go into debt to get a good education, buy a house, or start a business, then this is debt that will pay you back. Financial planning looks at those kinds of debts as investments. Taxes matter Good financial planning takes taxes into account. Not understanding, and correctly managing taxes can cost you plenty. You should be investing in retirement savings; they can work for you in more ways than one. Knowing what you can do with your taxes means using them in your financial planning process. Make sure you are withholding the right amount, understanding your legal deductions and taking them, and taking taxes into account when you are saving can not only help you save money, it can help ensure that you are not losing it needlessly. Financial planning is not for the faint of heart. If you decide that you need some help, there are financial planners who can help you understand your needs, and they can help you manage them so that you can properly save. It’s never too early, and it’s not too late. Miller Kaplan is an accounting firm providing tax preparation, business management and consulting services, including licensing and royalty audits, 401k plans, trademarks, succession and financial planning ( http://www.millerkaplan.com/services-2/business-management/financial-plan ) for high net worth individuals, family offices, healthcare, enter-tainment, real estates, food and beverage industries. For tips on choosing financial planning services, visit Investopedia.com.
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