Hi there!
Let me keep this simple for you. Here is an excerpt from a job that I've previously done for a finance firm:
Why is financial planning so important?
The advantages of financial planning aren't always immediately obvious. Let's pretend you're a 20-something who earns a decent wage. If you already are that person, then great—you don't need to pretend!
For this scenario, we will assume you've set up a bank account. Maybe you've got a couple of bank accounts, with one account for everyday expenditures, and another account dedicated to accumulating long-term interest. First of all, this is a great start, and it might seem like that's all you need to do to safeguard your future.
Indeed, there's nothing wrong with this approach—it's safe, sustainable, and your savings will accrue interest at a solid rate. The problem, however, is a lack of diversification. Investing in the share market can be an exciting but daunting process for amateur investors, which is why it may be beneficial to seek out the services of a financial planner to recommend an optimal investment approach.
Some financial services, such as AMP, provide a service that dynamically handles your investments so you don't have to. This mitigates risk and safeguards your savings in the long term. Better yet, investment in the stock market will always outperform your bank over the long term, and this is something you should keep in mind when considering your long-term financial interests.