Top Reasons For the Need of Financial Planning

Reason One is protecting your family and yourself against financial risks. It is hard to protect from the risks you face in life, and no one but yourself can do it. Those risks include injury, illness, death, and lawsuits but do not stop at just those few. According to Forbes magazine, the odds are just 1 in 200 that you will be sued at some point in your lifetime. It has happened to myself twice, so I am well ahead of those odds.
Reason Two is to get out of personal debt. The amount of people owing money to financial institutions these days is staggering. The debtors become younger and younger as credit card companies camp outside of high schools, and colleges enticing them with easy, free cash. If you ever heard the joke “running out of money before you run out of month,” than you know its not so fun to be out of cash before the end of your life. We live longer than ever, have more debt than ever, and less security than the last two-three generations.
Reason Three is because as I have just mentioned, you will live longer than you think. Today, our average life expectancy at birth is 76; and our 76-year-olds have a life expectancy of 86. According to studies in the relatively fresh fields of microbiology, gerontology, and biotechnology, some think that people in the year 2050 could be possibly living to age 140. This is not science fiction.
Reason Four is that odds are that you will go through multiple marriage partners. The estimated number of marriages in your lifetime falls somewhere in between four Best Instant Loans or five. We live in a multiple-marriage society, and even in case you don’t divorce, extended life spans will result in one of the spouses outliving the other.
Reason five is that you will have many different careers. When I remember listening to my instructor in class he mentioned that every seven years I will start a new career and can expect to go through about seven of them in my lifetime. I think those numbers are now changing a career every three years and having more than fourteen of them in one lifetime. We are in a fast Why You Should Get A Second Job paced, no holding back, no remorse capitalistic society that is ruled by corporations with a quite high turn-over rates. I am not sure how this was possible, but in my corporate sales job a few years back are turn-over rate was at over 150%. Since pension plans are virtually non-existent, the notion of having a secure retirement as we know it today shall fade away.

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