What is Financial Planning?

We all have financial goals and aspirations in life. In this article, we take a look at what financial planning involves and explain why it is important.

Often, our goals can seem out of reach. In today’s complex financial environment, achieving your financial goals is not always as straightforward as we would like them to be. Designed to help secure your financial future, a financial plan seeks to identify your financial goals, prioritise them. Then together, we outline the exact steps that you need to take to achieve those goals.

So, what exactly is financial planning?

In a nutshell – financial planning involves evaluating your current financial situation. By determining your short and long-term financial goals we can create a strategic plan to meet these goals. The overall objective is to create an ongoing plan that incorporates a process that will support your current and your future requirements. The aim is to also provide you with peace of mind in relation to all your finances.

Everyone’s financial situation is unique to them. Every financial plan will be different also. However, you can expect a financial plan to review the current state of your finances as you begin the process of listing your main financial goals. This will provide you with a specific a roadmap that details how you can achieve the goals you’ve set, explore your own attitude and tolerance to the financial risks you are happy to take in attaining those goals, and provide projections of your possible future wealth.

While it’s possible to create a basic financial plan yourself, it’s a good idea to develop a plan with the help of a qualified specialist.

We will take the time to discuss your current situation and your personal goals in detail with you. We will then put together a customised financial plan that is tailored to your requirements. One of the main benefits of doing this is that it prompts you to list your goals for the future. By clearly identifying and prioritising your financial goals, you can better understand how each financial decision you make impacts your life.

Everyone’s financial goals are different. For example, your main financial goal may be to save up enough money to live comfortably in retirement. Alternatively, it may be to save to send your children to a top school. No matter how specific your financial goals are, a tailored financial plan can be constructed with your personal goals as the key focus.

This is where we can be of assistance. We will be able to help you determine exactly how much you need to save and invest on a regular basis to achieve your goals. I will also be able to make recommendations in relation to the best asset classes and investments that will help you achieve your goals.

Financial planning can also bring clarity to your financial affairs. It’s an ongoing process, and it involves reviewing your finances on a regular basis, it can give you an idea of whether you’re on track to meet your goals. Therefore, we would ensure to book review meetings with you to discuss your goals plus any changes that may have happened since our previous meeting.

By regularly analysing your financial situation and monitoring your progress towards your goals, you’ll have a much better understanding of where you’re at and what you need to do going forward. By helping you see clearly where you are financially, I can help take the stress out of the ‘managing your finances’ process.

Moreover, financial planning is a dynamic process meaning that your plan can be adjusted as your goals and priorities change. You may not always know what the future will hold, and your goals could change due to changes in your circumstances. However, with a sound financial plan in place, you can relax knowing that whatever happens. You’ll be able to weather any life changes. A financial plan isn’t simply a static document, but instead, a tool that can be used to help you make adjustments to your finances as your life evolves.

To find out more, or if you have any questions about financial planning, please don’t hesitate to get in touch.