Financial planning is crucial for achieving longterm financial goals from "summary" of How Finance Works by Mihir Desai
Financial planning is the bedrock upon which long-term financial goals are built. It involves setting specific objectives, creating a roadmap to achieve those objectives, and regularly monitoring progress to ensure that you stay on track. Without a well-thought-out financial plan, it is easy to lose sight of your goals and get sidetracked by short-term temptations or unforeseen events. One of the key benefits of financial planning is that it helps you prioritize your spending and savings in line with your long-term objectives. By creating a budget and allocating resources based on your goals, you can ensure that you are putting your money where it matters most. This disciplined approach can help you avoid unnecessary expenses and focus on investments that will yield the greatest return over time. Moreover, financial planning allows you to anticipate and p...
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