FINANCIAL PLANNING

Financial planning is something many people don’t pay much attention to until there comes a time when you can’t afford to pay an unexpected bill, such as your children’s education. This is what financial planning is - simply organizing your finances so that when you’re not only thinking about your money situation now, but for the future as well. It is a process, but it doesn’t have to be complicated or difficult, especially when you have the help of a professional financial planner. Here are the steps to successfully planning for your financial future.

Establish Realistic Goals

The most important factor when planning your future finances is to be realistic about your current situation. If you aren’t realistic about the current state of your finances and commitments, your plan will not work. In order to establish realistic goals for your financial planning, you have to know how much money you currently have coming in and how much you have going out. Knowing how much you spend unnecessarily will allow you to have a general idea of how much you can put away for your future.

Select a Team of Advisors

Seeking help for financial planning is like assembling a team of professional coaches for your future. The financial advisors you choose should have the highest competence, reputation and objectivity as well as be willing to communicate with you about your realistic current needs and future goals. Make sure you choose a financial advisor that has your best interest in mind.

Developing your Financial Plan

This step of financial planning involves creating a written plan that is coordinated between you and your advisors. It involves careful consideration of the financial planning strategies, tactic development and tools necessary for each area of the plan. Whether your financial plan involves developing an investment portfolio, successfully exiting a business or an estate plan, it must be designed in a manner that connects your money with your goals.

Implementing a Financial Plan

This step of financial planning requires teamwork and communications between you and your advisor. A detailed financial plan not only needs to be developed, but followed by you, your family and your advisors. The steps of your financial plan must be specific and have exact dates for you to accomplish them.

The final and most important step of financial planning is monitoring your results. Without consistent monitoring, your plan can easily fall apart. It is essential that you maintain the commitment required for achieving your goals. Although there are several details necessary for successful financial achievements, understanding each step and following through is the key to your success in financial planning for your future.