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Why is Financial Planning Important?

November 21, 2023
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5 mins


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If you’ve ever wondered, ‘Why is financial planning important?’ You’re not alone. Financial planning is the act of managing your money to ensure you’re effectively handling your financial situation. It’s important as it helps you keep track of your spending and ensures you have a backup plan if anything unplanned happens. 

In this blog, we will look at why financial planning is important and how the team at Inovayt can help you manage your money. 

What is financial planning, and why is financial planning important?

Financial planning is the broad term used when talking about money management. From personal to business, financial advisors work with their clients to assess their financial situation and create a plan for their financial future. Financial planning is crucial as it allows you to understand where your money is coming in from and where it’s going so you can adjust accordingly to achieve your financial goals.

It’s a vital part of life – regardless of what stage you’re at in your financial journey. From young to mid-life up to retirement, an Inovayt financial advisor is here to help create a plan tailored to your financial situation and goals. 

Want to learn more? Read our blog, ‘What is Financial Planning?

Benefits of financial planning

There are plenty of benefits that occur as a result of financial planning. Some of the benefits of working with an Inovayt financial planner include: 

  • Financial security and peace of mind.
  • Improved financial decision-making.
  • Achieving short-term and long-term goals for you or your business.
  • Preparing for emergencies and unexpected expenses.
  • Tailored advice to your financial situation.
  • Regular financial reviews to keep you on track.
  • Growing your wealth for retirement.
  • They create set-and-forget investment strategies.

Key components of financial planning

Financial planning is often broken into a couple of main components. These are as follows:


There is more to budgeting with a financial planner than entering your expenses into a spreadsheet. A budget is a process we take our clients through to understand their household income and expenditure and determine their cash flow.

A tailored budget will highlight any negative spending patterns and can be adjusted to suit the financial goals that you’re trying to achieve. It allows us to track your expenses and identify any areas where you could be saving. 

Curious about your incomings and outgoings? Use our free budget planner calculator today. 

Savings and investments

Savings and investments look different for everyone. While some prefer to keep their savings in high-interest bank accounts, others might choose to invest in real estate or the stock market. 

An Inovayt financial planner can assist with the following: 

  • Ways of saving for the future.
  • Different types of investments (e.g., stocks, bonds, real estate).
  • Diversification and risk management of investments.

Debt management

While debt can feel crushing and even isolating for some, it’s one of the most common things our team helps people with. Working with an Invoayt financial planner will give you strategies for managing and reducing debt while simultaneously building upon your savings. They can also assist you with the impact of interest rates on your debt.

Retirement planning

Retirement planning is another thing we see a lot of our clients for. We have team members who specialise in retirement financial planning and assist our clients in: 

  • Setting retirement goals
  • Maximising their superannuation
  • Calculating their retirement needs

We know many people don’t consider financial planning for retirement until much later in life, but there’s no time like the present to start thinking about your retirement. 

The role of financial advisors

It’s a common misconception that financial advisors and financial planning are reserved for the wealthy older generation, but this isn’t the case. A financial advisor is an incredibly beneficial person to have on board for support – regardless of where you’re at in your financial journey. 

At Inovayt, our team of expert financial advisors can help with: 

  • Superannuation and investment advice
  • Risk insurance
  • Cash Flow planning and budgeting
  • Structuring
  • Tax planning
  • Retirement planning

why is financial planning important?

Creating a financial plan

Creating a financial plan with your financial advisor means you’re covering all aspects of your finances. 

A financial plan can include the following things:

Assessing your current financial situation

Firstly, a financial advisor will assess your current financial situation. This will include gathering all current information, including your incoming payments, expenses, investments, debts, etc. Having this information ready will help speed up the process. 

From here, your financial advisor will assess how healthy your financial situation is and what can be adjusted to improve it. They can also help you compare pricing on your superannuation, insurance, energy bills, etc. 

Setting financial goals

Financial goal setting is one of the most significant things your financial advisor can assist with. They take time getting to know your short, medium, and long-term financial goals while breaking them down into smaller, more manageable goals against which you can measure your progress. 

Developing a strategy

Once your goals are in place, our team will work with you to develop a strategy for achieving them. This includes modifying your finances and recommending changes to minimise any unnecessary spending. We will also devise strategies to achieve your goals and help you build a diversified portfolio. 

Implementing and monitoring

Lastly, our team knows the job isn’t done once the goals have been set and the plan is in place. We pride ourselves on our customer-first approach, meaning we don’t leave you to fend for yourself after our initial meetings. We constantly review your financial plan and adjust it accordingly where necessary. 

What can an Inovayt advisor do for you?

If you find yourself thinking about why is financial planning important, our financial advisors are expertly trained to assist you with your financial situation. We don’t treat you as a number – we ensure we tailor-make a plan to suit you and your unique requirements. Regardless of where you’re at in your financial journey, get in touch with the Inovayt team today. 

Find out how a financial planner could help you.


Start your journey, contact Inovayt today