With spring just around the corner, the days are getting longer and warmer. As you begin to feel more energised and focused, think about taking on this challenge: re-evaluate your personal financial plan.
We know that that probably sounds like the very last thing you’d want to do when the weather is good, but the fact is it’s critical. Your financial plan is the key to YOUR financial prosperity and happiness.
Not too sure where to start when it comes to finance? Here are the answers to four questions you are probably asking yourself right now.
1
What is a financial plan and why do I need one?
A financial plan is a detailed map of your strategy for reaching your lifestyle goals through investments, insurance and other financial solutions. It’s used to analyse your current financial situation and then help you establish short- and long-term wealth-building goals. By creating a financial plan you are giving yourself direction and purpose, which will make any money-related decisions you have to make so much easier. You’ll understand how each decision will affect other areas of your life, before you make them.
2
What should a good financial plan include?
In order to develop a good plan you need to consider how much time you have to achieve your goals, how to build wealth and capital, and how to best protect your assets and dependents. Your plan must combine the all aspects of your financial life, reflect your current goals and also guide you towards those goals. Check with a financial consultant to make sure your plan includes the following: wealth planning, investment management, trust services and risk management.
3
Can I do my own financial planning?
There is a lot of helpful information available through personal finance software, magazines and self-help books. However, developing a financial plan is pretty complicated, so it’s probably best to consult the pros to ensure your plan is comprehensive and effective. A certified planner will be able to evaluate your unique situation and give you the best possible advice and solutions tailor-made to fit your lifestyle.
4
How often should I revise my financial plan?
It’s a good idea to review your financial plan every year – this will ensure that the products and services you have invested in are suited to your changing goals and circumstances. If this feels like a big commitment, then just revise your plan whenever you have a major change in your life, such as a marriage, birth or salary increase. Doing this will align your financial activities with your long-term financial goals.
Yes, it does sound like a long, continuous process – but that’s what makes finance dynamic. And it’s totally worth it, because a good financial plan will enhance your lifestyle, secure your future and reduce uncertainty.
Does the word ‘save’ scare you? Check out these 3 money saving hacks.
