How important financial planning is to you?

Financial education is vital to everyone who has an income. I’ve met people who earn more than $25,000 a month and not all them is financially ‘stable’. Naturally if you earn more money, your expenses will also increase. However, if you have a proper financial planning, you can achieve your financial goals in time to come.

Just recently, I met with an ambitious 20 year old guy who earns $2,000 a month and dream of driving a BMW. When I asked him how he plans to buy the car, he told me that he will work very hard and save more money every month. However, when I asked him when he want to buy his first house and how he wants to retire, he told me that he has not thought about it yet and he is only concern about getting his car and lots of money.

The problem with him and many other people out there is that they do not have proper financial planning. It is proven that people who have proper financial planning will enjoy life in the future. whatever that they desire to buy, the lifestyle that they want, the education that their children will have and holidays that they want will be possible.

Can we be blamed for such bad financial planning?

Well, if you think about it properly, it is our teachers in school that we have to blame. When I was in school, all that my teachers told me is that I have to study extremely hard to get a good and high paying job. Did any of our teachers ever tell us that financial planning is very important? Did they ever tell you that even if you earn $25,000 a month, your financial freedom is guaranteed?