Weekly Reflections #16 : Financial Planning

Hello everyone,
It's a pleasure on my path to share with you all my entries in this week's contest which is titled "Financial Planning" which was organized by @damithudaya. It is an interesting contest and I would love to drop my entry ASAP.

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Before we go ahead I would like to invite @mesola, @bossj23, and @sahmie to join this contest in this community today and share their participation as well, I do hope to see and read your entries as well.

Do you think Financial Planning is important and why?

There are few things we can not completely neglect in life and one of them is financial planning. So yes financial planning is very important in our lives and that is because without financial planning we will always run into caos especially with the current inflation rate and economic situation of our countries at the moment.

As a Nigerian, I will tell you that people in my country are suffering seriously. Prices of assets and commodities has raised to 3x-10x over the past few months and if you are earning and not planning then tell me how possible it is to succeed in such economic.

So if you wan to grow and you want to succeed and keep moving ahead in this inflation state you need to always have a very good financial planning and this implies that there is also a bad financial planning which may cost you a fortune as well.

So the importance of financial planning can not be overemphasized when we are looking at the current economic situation because everyone needs this planning to become a successful person and to meet the families ends means.

How do you track your expenses and savings?

As someone working or earning salary or wages by any means you must have a strategy to track your expenses and savings because that is they only way you will be informed as to how you make use of the money you are earning.

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So in my opinion I believe that you need to always keep record of money that comes in and the money that goes out. In doing so you will be able to know at the end of the month or year if you have achieved something or not.

So have a record book and then put down your earning, your savings and your expenditure and then finally do your arithmetic and see if you have made any progress or not. When you do this always you will be able to track all your finances for the week, month or even a year.

What are some common financial mistakes to avoid?

When we talk about financial mistake we are talking about planning that are not properly done financially. A lot of us today don't plan financially well today and this has affected us greatly. One of the mistake that is notable is not planning at all. There are many people today who don't have plans on what or how to use their money when it comes.

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This is the biggest mistake to avoid if you must be successful. Always put on writing the things you want to do with your money so that you can give account of how it is used when you are alone or wishes to know how far you have gone. Also going with unnecessary budget is also a mistake that must be avoided by all means.

So extravagant spending and unnecessary spending must be avoided so as to use your finances wishely. Also only when it becomes necessary should you spend otherwise saving for the rainy days is the best thing that should be done always.