The Importance of Financial Planning – Low Interest


We have already spoken here on the blog about the importance of saving (not the book) but we have never said anything about financial planning.

Planning is the continuous process that consists of a set of actions oriented to make a future goal a reality. It is necessary to manage the company and to put it into practice it is necessary for the manager to know the necessary tools.

Action programs are included in planning and are intended to achieve business objectives. Planning in a company is about choosing alternatives to reach an objective efficiently.


What are the types of planning?


What are the types of planning?


One of the first administrative functions is planning. It is the activity of defining a desired future and providing a viable situation for assessing the future implications. There are three types of planning: Strategic Planning, Tactical Planning, and Operational Planning. Each of them helps in achieving the goals and objectives of the organization.


But how so financial planning?


 But how so financial planning?


Well, the idea here is very simple and can be summarized like this:

Always have an objective when investing. Assemble a plan and follow it to the end.

Are you still confused? Calm down, it’s easy, I’ll explain. When you save, it is extremely important that you know why you are saving. Is it for a trip? Is it for an emergency? Is it for your retirement?

When you know exactly what your goal is, your life becomes much easier. For example, if you are saving for an emergency, then you need something safe and that you can get out quickly. One suggestion might be a Treasury title, such as a LFT (Treasury Selic).

Now, if you’re saving up for something a lot in the future, such as retirement for example, we can afford to run a little more risk. One suggestion may be to leave a portion of this money invested in the Stock Exchange. In short, when we have a goal to achieve, we can choose the best investments to achieve this goal.

How important is strategy within the company or personal life


How important is strategy within the company or personal life

The importance of strategy within the organization is critical and helps to better define policy and objectives. It also helps the organization to define its future, it aids in the decision making process. It is important that a manager, before running the company, knows how it was formed and how it is currently. He needs to study the case and know how it will accomplish the goals. Good planning should be strategy-based and should generate an expected result.

The strategy defines indicators of the actions that must happen in the right time, so that the organization is well positioned in the market and manages the expected results. It must be well managed, thus generating and seeking the resources needed to achieve the goals. The strategy helps you plan the future of an organization and this brings a lot of security. In addition, it creates criteria to cut costs and create improvements to increase productivity.

Flexibility is needed to consider adjustments that need to be made within the enterprise. It is part of the strategy, it is not considered a rigid plan. The manager or leader needs to use the strategy intelligently and make the company well targeted. Performance indicators should be transparent and allow monitoring of results. Leaders and staff need to walk in the same direction and show satisfactory results.

Strategy and Planning



Managers need to have a broad vision to analyze the strengths and weaknesses of a company. All aspects must be taken into account, assessing strengths and weaknesses in relation to people, objectives, processes. Also note the opportunities and threats related to the external environment.

The leader needs to know what opportunities are available and can be explored. What threats can harm the organization and take into account several factors, including customers and financial objectives.

Therefore, by performing these procedures, leaders or managers have a much clearer and more objective picture of the company environment. Thus, he knows how to plan actions to formalize the strategy and bring a differential to the market. What’s more, you will be able to achieve all the goals and execute the actions successfully.

Okay, is that it?


Of course not. Once we know why we are saving and designing the plan we really need to make savings, that is, put that money into investments.

Let’s not fool ourselves here, we know that saving is difficult, even more so in a crisis situation like the one Brazil is going through today. So when we have a definite goal, everything gets easier. Imagine two scenarios. At first you put a little money in savings every month. You’re basically putting in the leftovers at the end of the month, without really worrying about how much you put in.

In the second you know you want to buy a car. You choose the investments and define that if you save 500 reais a month, in 5 years, you can buy the car. Which one do you think you could save more?

It is very likely that in scenario 2. When we have a goal, it is much easier to save because we remember why we are doing it. Money ceases to seem like it is going nowhere and becomes part of your life. We are encouraging ourselves to save.

It is!

 It is!


With good financial planning it is easier to save money and make more money! Like almost everything in this life, it is always good to plan before you act.

Got any questions? Suggestion? Comment below or contact us through our facebook page! We are always willing to help!


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