The Five Ws of Financial Planning
The Five Ws of Financial Planning
Let's answer the fundamental questions of who, what, where, when, and why regarding your Financial Planning.
Who should have a Financial Plan?
Who should have a Financial Plan?
This seems obvious, everyone. Not everyone needs an in-depth financial plan, and many people could make do with simply following the following basic principles:
Spend less than you earn
Pay down debt
Save more.
Ultimately, if you are taking a once in a lifetime journey and want to know where you are going, you need a roadmap to get there.
What is Financial Planning?
What is Financial Planning?
Financial planning is the process of creating a long term strategy to meet your financial goals through careful and efficient management of your finances. The first stage is to detail where you are now, financially, and what you want to achieve in the future. We then analyse how far you are from achieving these goals and create a plan to bridge the gap. If necessary, we will then implement any agreed changes and set a review for 12 months time.
Where do I start with a Financial Plan?
Where do I start with a Financial Plan?
You may be ready to engage a Financial Planner or want to take on some DIY planning first. The first step is always to analyse your income and outgoings. No Financial plan can overcome overspending. If you take anything from this article, take this. You need a budget. You need a budget for your general expenditure, one for your debts, and one for your plans. Over time you would expect your income to rise. Control your general spending, reduce your debts and increase the goal budget. If you get these three correct, you will start your financial planning on solid footing.
When should I start my Financial Planning?
When should I start my Financial Planning?
Today. In fact, you have always probably always had a financial plan. You may not have written it down, it might not even be a good one, but you have a vision of how life should be. Now is the time to try to make that vision a reality. Financial planning is a lifetime process that you start on your own, maybe add a partner, and eventually engage a Financial Planner. We help to cut through the noise and complication of financial products and help you focus on what is important.
Why should I engage a Financial Planner?
A good Financial Planner will help you plan your finances throughout your life. They will highlight your blind spots. Make you think about the consequences of each potential action or inaction. They will help you plan for the financial independence you desire. Your Financial Planner will help you stay on track over the years. We all get sidetracked at some point, and there are always new shiny things we want to own. Your advisor will help you model out how buying these objects affects your plans for the future, for better or worse.
Ultimately, you will have peace of mind knowing that someone is holding you accountable to your future self. If you would like to speak to a Financial Planner, please book an initial consultation here. We usually suggest an online video call first. However, we are happy to meet at our offices in Mid Ulster or Belfast.
