THE BENEFITS OF FINANCIAL PLANNING IN WEALTH CREATION
Throughout his career, and later as a public speaker, Steve Down encountered circumstances that instilled in him one crucial lesson; a penny saved is a penny earned. His career as an entrepreneur and investor taught him the importance of managing his finances prudently. As a renowned speaker, he often speaks about this saying, “take care of the dollars and the millions will take care of themselves.”
It was Steve’s deep-seated desire to help others and share the knowledge that led him to establish a financial fitness company that would help people grow their wealth and attain financial freedom. Nowhere else is the maverick entrepreneur’s idea concerning money management needed more than here in Kenya.
A Common Trend
The common trend among salaried workers in Kenya tells a lot about the spending habits within this society. Most earners tend to pay their bills and then splurge on entertainment and leisure in the first two weeks after payday.
The third week is usually a wake-up realization for many who then struggle to create unrealistic budgets that barely make it through the week. In the fourth week, a high percentage often ask for salary advances, borrow from friends and businesses and stumble awkwardly towards payday.
Furthermore, those with five-figure salaries rent houses that demand almost half their net income and educate their children in status-affiliated institutions that offer insignificant returns in education quality.
Insurance premiums, savings, and investments are options rarely considered unless automatically deducted from their salaries. Another worrying trend is the propensity to acquire a debt-inducing vehicle, which according to Robert Kiyosaki in Rich Dad Poor Dad, is a liability, not an asset.
Objectives of Financial Planning
The idea of wealth education as advanced by Steve Down, who indisputably is America’s Wealth Physician, cannot be understated. He insists that charity begins at home, and if Kenya has to experience economic growth, then everyone must safeguard their financial well-being. According to the
successful businessman and author, individuals must formulate comprehensive plans that include their current financial situation and long-term objectives, along with strategies to achieve them. Seeking the help of a financial advisor is recommended, though these professionals are costly and will only tell you so much.
A better alternative is to enroll to the online program offered by FinanciallyFit Africa, where after seven steps of guided tuition and practical lessons, you will have gained sufficient skills to acquire mastery over all your financial dealings and on a fast track towards achieving total financial fitness and wealth.
While speaking about financial planning, Steve explains that it is a step-by-step approach to estimating the required capital and determining how to acquire the same. Simply put, it helps manage finances better by tracking income, expenses, and investments.
While making a financial plan, the globe-trotting Keynote Speaker will often remind his audience to consider their current monetary condition and future expectations.
Steve emphasizes that there are several practical benefits of chalking out a financial plan. He outlines them by explaining how a financial plan will provide insight into your income and expenses to help you make a concrete plan that will allow you to save more. With monetary planning, you cut down your unnecessary expenditure and boost your savings in the long run.
Managing funds without compromising on the standard of living is the ultimate goal of every person. Therefore, having a sound financial plan under your sleeves will help you pay monthly bills, loan repayments, and other expenses while living in relative comfort.
Preparing an emergency fund is a necessary aspect of financial planning according to Steve Down, who incidentally, is the founder and CEO of Financially fit. This fund, according to him, will help you to procure funds in case of a family crisis or job loss. Therefore, financial planning prepares for any unforeseen situation.
Based on the acclaimed thought leader, financial planning requires strategic measures to provide optimal results. According to him, one must first determine their current finances and, based on their financial goals, decide the changes they have to make or the available alternative options available to them.
A transformative philanthropist, Steve Down emphasizes the importance of Financial planning saying how it is a tool used to help achieve financial needs in the present and future. At its peak individuals, and families can achieve financial goals such as wealth creation, being free of debt, fixed income flows from investments, and most importantly, being financially protected from any risk outcomes.
Listening to this financial advisor, you quickly understand that Financial Planning is the ability to make informed judgments and to take actions regarding the current and future use and management of money. It includes understanding financial choices, planning for the future, spending wisely, and managing the challenges associated with life events such as a job loss, retirement, or paying for a child’s education.
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