Personal financial planning is an ongoing process.
Helping you make sensible decisions about money that can help you achieve your goals in life. It’s not just about buying products like a pension or an ISA.
It might involve putting appropriate wills in place to protect your family, thinking about how your family will manage without your income should you fall ill or die prematurely, spending money differently or re-arranging your investment portfolio to take account of your changed circumstances. In any event, it always involves thinking about all these things together, i.e. your plan.
You can build a plan on your own, or if your needs are more complex you might need the help of a qualified Financial Planner to create your own sound financial plan in six steps:
Step 1 Establish your goals in life – short, medium and long term.
Step 2 Work out what assets and liabilities you have.
Step 3 Evaluate your current financial position.
Step 4 Develop a plan to achieve your different goals.
Step 5 Implement the plan.
Step 6 Monitor and review your plan at least yearly, making adjustments when needed.
Start by working out your goals in life in the short, medium and long term. Prioritise them and think about the likely cost of those goals and when you will need the money, so that you can start to plan your finances to work out how to achieve them. Don’t forget you also have to plan for some of the hurdles you may have to overcome. It is about getting organised and taking control of your finances, rather than letting your finances control you.
By planning your finances to meet your goals you will:
- Have much greater confidence in where you are going in life.
- Reduce your stress levels and start to enjoy life more.
- Gain control and peace of mind through knowing whether you are on track for the future you want for you and your family.