financial planner

Reason Why You Need a Financial Planner

Something may come up in the near future that would require you to hire a financial planner. When you think of the word “financial”, what comes to mind after would definitely be money matters. Your train of thought may move further to things like budgeting, loans, taxes, insurance, etc.

From the above ideas, the conclusion would be that financial planners are experts who are qualified to help you with money management. In view of this, get ready to understand why financial planners are relevant in today’s world.

Roles a Financial Planner Can Play in Your Life

Firstly, keep in mind that you will be getting value for your money when you hire a financial planner. In fact, there is no better time than this period of the COVID-19 pandemic that seems to keep forcing countries back into lockdowns (partial or full).

It is no news that the pandemic has had major adverse effects on the global economic sphere. Many individuals and businesses have had to keep making tough financial decisions since the start of the first global COVID-19 lockdown in 2020.

You can save yourself from experiencing financial losses by contacting a financial planner that will put you on the right track away from making bad decisions. Apart from that, you will be saving yourself a lot of time that could have been used to do other important things in your life.

As a business owner, having a professional that takes care of your company’s financial plans is good for your peace of mind. Mental stress will be greatly reduced. Now, take a look at the roles that a financial planner can play in your life below.

As Expert Planners

Would you rather plan how to manage your spending on your own instead of letting someone who was well-trained for it help you? Of course not. If you can afford to hire an expert, why not? Professionals will present you with the best options, and prepare you for the worst case scenario in advance. Such collaborative efforts will yield better results than when you act on your own.

As Money Savers

Financial planners review budgets and point out where you can cut costs. You will be spending less than what you intended, and making more than what was projected. Apart from that, they will aid you in closing every loophole that may lead to you incurring business losses.

As Advisers

Financial planners can give advice like financial advisers. They can direct you on the best investment principles to follow based on the economic climate. They can also help you to build personal accountability in order to secure your future through savings and insurance policies.

As long as it is a matter that involves major money management, the services of a financial planner will be relevant to it. You will be making smarter decisions with a plan that was drafted by a professional. Of course, this will reflect positively in minor money matters. You will be paying for their services, but they can help save much more than what you are letting go.…

Top Reasons Why People Go Bankrupt

Bankruptcy statistics in the US are going up the past few decades have seen a dramatic increase in the number of people who file for bankruptcy. According to the US bankruptcy courts, more than 1.5 million people will file for bankruptcy every year.

Moreover, many bankruptcy filings are made by individuals rather than businesses. This is because bankruptcy is the solution to getting a fresh start away from financial trouble. These numbers, however, are justifiable because situations that lead to bankruptcy can happen to almost anyone at any time. 

Many of the reasons why people go bankrupt are more common than you would think. Overspending on luxury items is lower on the list than you would think. The top reasons are more down to earth.

  1. Medical Expenses– a study published in the American Journal of Public Health back in 2019 indicated that the weight of unpayable medical bills caused 66 % of all bankruptcies in the US. Moreover, 72% of these people hand medical insurance covers which. This goes to disprove the theory that only the uninsured will go bankrupt due to medical bills. 
  2. Job loss– whether it is termination, getting laid off, or resignation, losing the income from a job is disruptive to your life. Bankruptcy rate increases with job loss as you will be forced to pay for expenses without a stable income. Plus, if you do not have a proper signs account that you can use to pay off bills until you find another source of income, you increase your chances of filing for bankruptcy. Unfortunately, statistics have shown that three out of ten Americans do not have savings accounts. 
  3. Unexpected expenses– unexpected expenses are just that, unexpected. Loss of property in the event of an earthquake, flood, or any other natural disaster where the owner is not insured can force some into bankruptcy. Many people do not have adequate coverage for such events and are more likely to lose a lot. They will have to replace items, find immediate shelter, food, and more. 
  4. Divorce or separation– marital disagreements bring in a lot of costs even before you factor in the price of a divorce lawyer. The legal fees are followed by alimony, degree of child support, division of marital assets, and finally, the cost of keeping two households afloat. It may also mean that you would have to take a portion of your partner’s debt if you co-signed on something or had a joint account. The combination of these debts can become unmanageable very quickly, and many spouses end up filing for bankruptcy. 
  5. Student loans- if you have not yet paid off your student loans, you are not alone. Statistics show that inability to pay student loans account for one percent of all bankruptcies a year. This means that roughly 15,000 bankruptcies every year are as a result of student loans. 
  6. Foreclosure– finally, one of the most common solutions for people facing foreclosure because they were unable to keep up with mortgage fees is bankruptcy. Approximately one percent of all bankruptcies each year are done to prevent foreclosure.