Financial planning is an important part of looking to the future, but it is limited by the uncertainty of the future. The main disadvantage of financial planning is that it is only a prediction of the future, which may or may not be accurate in terms of the expected result. Therefore, when preparing a financial goal, it is also necessary to consider several factors. The reliability of financial planning is uncertain and highly doubtful, as it is based on assumptions.
Any plan we make is for future events. As we all know, the nature of the future is uncertain and no one can predict it. Because of this, all of the financial plans we make are limited and unexpected. This uncertainty decreases the reliability of financial planning.
Planning always includes an important part of looking to the future. And if you consider just planning a lot of things without looking to the past, there's a good chance that you'll get bad results. Financial plans are prepared taking into account the situations expected in the future. Since the future is always uncertain and things may not happen as expected, the usefulness of financial planning is limited.
Financial planning refers to planning your spending, saving, and investing in the right places for a secure future. Financial planning can also include control by analyzing and implementing an ideal financial plan. In conclusion, financial planning is an important tool for looking to the future, but its reliability is limited by the uncertainty of the future. It is important to consider several factors when preparing a financial goal and to be aware that it is based on assumptions.