Have you ever experienced scrambling for cash when you need to pay for rent, utility bills, postpaid mobile phones and credit card bills? Have you ever been stressed trying to make ends meet before the next payday? Are you borrowing money from someone else to use as your allowance? If you answered a resounding yes to any of the above-mentioned questions, you might be lacking a financial plan. Personally, I have experienced all of the above myself, and it’s no fun at all!
Financial planning might sound like something only the rich people need and can afford. The good news is, you don’t need to be wealthy or ultra rich to reap the benefits of financial planning. And it won’t even cost you an arm and a leg! As a Financial Advisor, I am offering a free financial consultation to those who need to jumpstart or align their finances.
What is Financial Planning?
Financial Planning is an ongoing process to evaluate your current financial situation and your long-term goals, to guide you how to manage your finances well and how to prioritize wise-spending and investing that helps to achieve your life goals.
What is the Goal of Financial Planning?
The ultimate goal of financial planning is to reduce your stress about money, support your current needs, and build a comfortable nest egg for your retirement. This allows you to control your financial situation — where you are and where you want to be.
A comprehensive financial plan can elevate the quality of your life. It gives you a peace of mind and sense of freedom from financial worries caused by life’s uncertainties, future financial needs and future resources.
In financial planning, we will look closely into your current finances — how much is coming in and how much is going out. Identifying your short-term, mid-term and long-term goals are also important. You need to think what are your life goals. Do you want to buy a car, or a house? Do you have kids, or are you preparing to have kids? What age would you like to retire? How much money do you need for a comfortable retirement? These are just some of the life milestones we need to prepare for. Then, we will need to develop immediate, mid-term and long-term plans, like building and sticking to your budget, paying off high-interests debts, and starting your retirement savings plan.
Financial planning is not a static process, you need to make adjustments depending on how you are progressing. Major life events like preparation for a wedding, the birth of a baby, emergency health situations — are the common times when financial plans need to be reviewed and updated.
If you are not the DIY-type and might need help in managing your finances, send me a message for a free financial consultation today.