Financial Planning from An Individual and Business Perspective

Financial planning is the comprehensive evaluation of a business that helps an entrepreneur to know what it will take for his/her business to achieve both the strategic and objectives of his/her business. It’s expected for every business to have a financial plan once it has laid down its objectives and plans.For a successful business, one needs to know both the strategies involved and some of the benefits accompanied by planning.

Below are strategic points to consider when strategizing:

• Review your tax efficiency:Reviewing efficiency of your taxes will help in the maximization of returns. As a business person, one knows that tax efficiency is measured by how much remains after all the taxes have been deducted. Therefore, before proceeding, make sure that you have worked with your investments advisor so as he/she can evaluate your investments and all the returns after Tax deductions.

• Manage short term cash flow. Unplanned Liquidity needs arise from time to time. This can be in the form of a sudden medical bill or an unexpected family emergency. In a situation like this, what one should ask himself/herself is if you have a plan B . Using the business money should be as a last resort. The best advice in a situation like this is to consider borrowing from a margin loan. MARGIN LOANS are best as one can repay the borrowed amount at his/her flexibility and also at their own convenience.

Apart from having the best strategies for your finances, below are some of the benefits that one will have if he or she decides to enroll in a proper financial planning:

• Well defined financial goals. For couples, it’s advised to discuss your plans together as it is easier for you to settle on the same page. The couples can instead of planning for a vacation sit down and come up with the best retirement plan.

• Financial planning will help you see if your goals are realistic.The job of a planer is to come up with the best cost-benefit analysis. The planer knows that it takes a long time to do things like save for a retirement or a time for one to pay their debts. Having a planner will help as he/she will advise you on the best investment to make and how much you should save per month in order to attain your goals.

• Lastly, a financial plan will benefit a couple or a business to know on how much one can spend.The way we spend reflects a lot on how your future will be like. Basically, check if your spending is more than what you are making. If by chance your expenditure is on the negative, then achieving your set goals will be next to impossible.