Weekly Reflections #16 : Financial Planning

Good day Steemians. It is my pleasure to participate in this Steem engagement challenge which is organized by @damithudaya in Comunidad Steem For Better Life Community. Permit me to make use of the hint provided in this contest to share my entry in this contest. I will appreciate if you continue with me as I share my thoughts.

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Do you think Financial Planning is important and why?

Planning on its own is very important, a man that don't have the knowledge of where he is going to, will definitely end up elsewhere. It is better you plan in other to escape or avoid failure in life.

I once heard someone said, if he is giving six (6) hours to cut down a tree, he will sacrifice the first four hours out of the six sharpening the axe. What a powerful words of wisdom! The tree that provides a shade today was once planted or perhaps began with just a seed in the soil or maybe a root.

With the above understanding, it is clear that financial planning is very crucial to every individual, family, groups or organizations. There is no successful organization today that did not do the homework of financial planning. As a matter of fact any business that lack financial planning, will soon fall a natural fall. No nation no matter how rich its may be that will survive a year budget without proper financial planning.

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How do you track your expenses and savings?
What are some common financial mistakes to avoid?

How to Track your Expenses and Savings

• You must have a financial dream or target, that is setting a financial goal.
• Make a monthly financial budget of how much to spend and for what. Be delebrate and discipline in following it.
• Make a scale of preference of what you want to buy with the money. This should be done by setting your priorities in an order of hierarchy (Opportunity cost)
• Create a provision for emergency fund which shall serve as an emergency intervention fund.

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Common Financial Mistakes to Avoid

• Lack of Financial Planning and Budgeting.
• Poor Financial Planning and Budgeting. Spending your money anyhow beyond your means can land you into financial debt or trouble.
• Lack off a working Pension fund account
• Lack of scale of preference in your expenses.
• Living indebted

I'm inviting @josepha, @simonnwigwe and @ruthjoe to join this contest.