Financial Stability

• The most important reason for financial planning is that it brings stability. Know your cash inflow and allocate it properly and you will be off to a good start. You will be able to live your life, knowing how to manage your money and that your means will keep you from overextending yourself. Not only does financial planning bring you peace of mind, you must achieve stability before moving on to ventures like investing.
  
  

Debt Management

• Poor debt management often is a result of poor financial planning. When debt reaches unmanageable levels, you will find the majority of your finances dedicated to servicing monthly obligations. Manageable debt, on the other hand, can be necessary. If you have a large expenditure without cash on hand, proper financing will keep you out of trouble. Ensure that the financing fits into your overall financial plan and you will maintain your stability.
  
  

Savings

• Proper financial planning will help you build savings. Having money set aside, while contributing to your ultimate financial goal, will allow you to deal with major events from vacations and weddings to home and auto repairs or medical/legal expenses. The more cash you have on hand, the less you will have to rely on financing that doesn't fit into your plan. Being ready for life's unannounced expenditures will keep your finances stable.
  
  

Retirement

• Ultimately, a sound financial plan will allow you to retire from your job and allow you to live out your life financially stable. If you do not plan properly and carry large debts late into life, you may find yourself working until you are physically unable to do so. If you do not have enough funds set aside for retirement, you can find yourself unable to maintain your previous lifestyle and unable to manage what remains of your finances.