Financial planning is essential for longterm security from "summary" of The New Psychology of Money by Adrian Furnham
Financial planning serves as a crucial tool in ensuring long-term security. It involves the strategic management of one's finances to achieve future goals and safeguard against unexpected circumstances. Without adequate financial planning, individuals may find themselves vulnerable to economic challenges and unprepared for the uncertainties of life. By creating a financial plan, individuals can establish a roadmap for their financial future. This plan outlines their goals, income, expenses, assets, and liabilities, providing a comprehensive overview of their financial standing. With this clarity, individuals can make informed decisions about saving, investing, and spending, aligning their actions with their long-term objectives. Moreover, financial planning helps individuals anticipate and prepare for potential risks. By identifying potential threats to their financial security, such as job loss, medical emergencies, or market do...
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