The importance of financial planning

Financial planning helps individuals to effectively manage their money and improve financial decision-making. It also helps control finances and avoid unhealthy decisions, such as excessive borrowing, or relying on others to manage expenses.

Also, with financial planning, you ensure the availability of the appropriate financial amount at the right time in the future, to achieve your specific financial goals, according to the Saudi Arabian Monetary Agency, which indicated that the first step in the financial planning process is to evaluate and analyze your current financial position, by identifying your financial resources, Such as your monthly salary, and your other income that you get, as well as identifying your expenses and financial obligations, such as bills, installments and recurring living expenses.

The Foundation stated that analyzing your financial information, which includes your income sources, your spending method, your financial obligations, your savings and your investments, helps you arrange your financial affairs, know your spending pattern and your consumption method, and thus know how this is compatible with your future financial goals that you want to achieve.

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