You have to check if there are symptoms that indicate that your financial situation is deteriorating. If it is, then you need to plan your finances.
People get worried or concerned about their finances as and when they are impacted by a specific instance where they have felt some degree of pain or discomfort. The following chart shows a few such instances:
They usually take some short term measure to get over such a situation but fail to see the BIG PICTURE. In fact in medical terms by doing so they are treating the Symptoms and not attending the causes.
Disorganized - Most of the people do not take count of their financials until there is an immediate need. They do not check how much is their total loan outstanding or how much life insurance cover they have in total.
Mismanagement - Reckless spending, investing money required for short term needs in risky assets, locking all the money in illiquid assets are signs of mismanagement
No Planning - Impulse decisions on spending and investments without looking into the future needs leads to Financial Distress
Time Constraints - Fast Life, Busy Schedules, Multi-Tasking; loses track of own finances Finally they end up in debt traps, missing life goals and liquidity challenges. If you can identify any of such symptoms, it is good you get to plan your finances. A STITCH IN TIME SAVES NINE!