Neowintech reminds users: uncertainty should be part of your plan
In light of the most recent developments regarding the Covid-19, particularly in Europe, financial marketplace Neowintech is stressing the importance of accounting for uncertainty in the context of preparing a personal financial plan.
Being a company aimed at providing simple access to third-party financial products to a wider range of people, it hopes to contribute to an improvement of overall financial health across countries.
As last year has made abundantly clear, uncertainty is a part of life that is inevitable at some point. Although most people don”t usually struggle with such high levels of it as it is being globally experienced, the fact remains that any situation can potentially change at any moment, regardless of how ingrained some routines may be.
No area of life is immune to the phenomenon, and finance is an area particularly prone to it. In parallel to the health crisis, with France and Germany tightening up on lockdown measures to contain the virus, European stocks have been taking a significant hit, as reported by Marketwatch.
History shows that there is no such thing as an eternal uptrend, and the difference between succeeding or not may very well be found in how one reacts to adversity.
As a starting point, every plan needs to be based on an element of truth. That is, an as clear as possible picture of the current circumstances, from recurring income and expenses to any reserves that one may have, even if some are not immediately available.
To reach a goal, a target financial state, it is necessary to list what needs to be acquired so that it is possible to bridge the two realities.
However, there are two potential obstacles that could seriously risk the making of an adequate and flexible plan.
Firstly, the tendency to not consider a wider timeframe. In times like the one we live in, when Eurostat estimates that 15.663 million people were unemployed in January 2021 in the EU alone, it is not strange to think a great number of people are focused on what is right in front of them.
Consequently, the future could be regarded as an afterthought. And while the present needs to be addressed, with no doubt, the habit of allocating some part of one”s resources, no matter how small, can help to maintain a preparedness mindset. When conditions are better, it will be easier to increment a small plan than it is to start one from scratch.
Secondly, it must be recognized that no amount of planning is perfect. No matter how many variables are considered and how many scenarios are played out, there is still a large part of possibilities that will remain out of our capacity to predict.
It is for this reason that an emergency fund is such an important component of a personal financial plan. Because things we can predict will occur, we just don”t know what those will be or when they will happen.
There are many tools available to make up a plan, some of them can be easily found on Neowintech“s marketplace – but the recognition of what is out of one”s control can be the most valuable for making one that can resist times of financial stress.
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