Does financial planning make sense for poor people?

Financial planning can be simply defined as the efforts and strategies set in place by an individual or an organisation to generate surplus income and spend it in the best possible ways. This has been very common with thousands of different forms of modern financial planning taking effect but the main question; is this only for the rich in the society?

Forms of financial planning

They are different forms of financial planning in society today and I have divided them into

  • Liquid asset planning
  • Fixed asset planning

These are the main form of planning that are implemented by either an individual or even a country as it plans for its people in the immediate, near and distant economic future.

Liquid asset planning

Liquid assets involve the use of specific money-saving scheme strategies that ensure the money invested remain valuable despite the negative change in the inflation curve, some of the liquid asset planning include buying of stock, bonds and shares which in turn returns in the longterm and the short term through the annual dividends and bonuses.

Fixed asset planning

This involves investment in long term items through corporates and high-value assets like land, real estate is an example of a fixed financial asset plan that has proved ideal for most of the abled investors.

Does financial planning apply for the poor

Who is a poor person or country? We can argue about this for the whole day but a poor person can be defined as an individual who cannot simply meet their basic needs which include food, shelter and clothing.

In the 21s century, basic needs are not just the traditional three, food, shelter clothing most countries’ constitutions have recognised other basic wants like education as mandatory to each of their citizen despite their background.

Strategies for the poor to access education

Most ‘third world countries or developing countries to be fair, have now embraced ways of funding most of their citizen’s education to improve the country’s literacy levels. However, most of these citizens find themselves in limbo after completing their education due to a lack of job opportunities in the less developed economies and this makes it difficult to overcome poverty and establish a financial plan.

Is financial planning possible for the poor?

Financial planning is very difficult for the poor in developing countries due to the main challenge of unemployment while in developed countries due to massive job opportunities one can have a long term financial plan and changes their status from peanut earners to middle earner or the richest.

For anyone who is in a developing country and of poor living standard it’s nearly impossible to have any form of a financial plan.

How can the we make financial plan possible for the poor ?

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Children in shool

The only way to change the social status quo of the poor in developing countries is for the major players like the governments to heavily invest in the manufacturing industry and avoid over-reliance on the already existing collar jobs and instead set a significant budget for factories which will create opportunities for the poor increasing their odds of planning their finances as you can not plan for what you don’t have and if you also don’t plan you are planning to fail. Also read, How to save money in a family of four in Africa

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