As your financial planner, I place you at the center of the planning process that takes place whenever we meet for a consultation. While I can advise you on the best strategy to follow in planning your personal finances, the ball is ultimately in your court – I am always on hand to provide assistance and advice, but your commitment is essential in making the financial planning process a success.
Setting measurable financial goals
Specific targets are measurable ones, and you’ll need to be quite accurate about your financial goals in order to achieve them. Many people talk about enjoying a “comfortable retirement” without thinking about just how much capital will be needed to do so. Similarly, many clients tell me that they would like their children to attend “good” schools without defining what schools they have in mind and how much the annual fees will come to – in these two examples, the lack of specific targets may prevent the clients from achieving their financial goals.
Knowing the impact of each financial decision
Each financial decision you make can affect several other areas of your financial life. An investment decision you take may have a tax implication at a later stage, while paying for your children’s education may cause you to retire later – it’s essential to understand that all your financial decisions are interlinked.
Re-evaluate your financial situation periodically
Financial planning is a dynamic process. As your lifestyle, income and net worth change over the years your financial situation needs to be re-assessed regularly to ensure that you are on-track for major life events like retirement, while providing for the needs of your dependents, including your children’s education.
Start planning as soon as you can
Financial planning isn’t just for middle-aged people approaching retirement. In fact, the sooner you start planning your finances, the better your chances of retiring with sufficient capital when the time comes. By learning positive financial habits like budgeting, saving, and long-term investing, you will lay the foundation for wealth creation later in life.
Be realistic in your expectations
Financial planning is a common sense approach to managing your finances – it won’t change your financial situation overnight, but over the long term it will allow you to create real wealth and enjoy your retirement. Remember that your financial journey may not always be smooth, but you will recover from temporary setbacks with good long-term planning.
Remember – you are in charge
Your financial advisor can only take you so far – you need to assess your financial situation regularly, taking charge of your finances and providing your advisor with all information relevant to your finances.
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