Fianncial Planning For Individuals – Video Transcript
Financial Planning is a way of organising your finances that focuses on you, your goals, and the outcomes you desire.
Your goals, both current and future, lead the process.
This is different to other ways of managing your money, that simply fit a solution to a requirement or a financial product to a financial need.
Financial Planning on the other hand looks at what you want to achieve, your ambitions, who you are as a person including your values and starts with you, your family and your wishes, rather than your finances.
Once your goals are explored and prioritised, then a financial plan can be developed. The goals can be converted into sums of money. This identifies the various amounts you need and when you will need them.
From there you can build a long-term income and expenditure forecast. This will help you make smart decisions about what you need to do at each stage, to ensure you hit your target amounts.
This approach or method provides valuable insight into how to structure your investments, your risk profile, your tax requirements and so on.
And once you put your plan into place this can then be supported by regular reviews year by year to keep the plan on track.
Your plan should be flexible to allow for changes in your situation and changes in your goals. Plus, it will need to have protection built in to manage some of the risks that can crop up along the way.
This is part of the beauty of financial planning – it is a dynamic method which works over long-periods and is a perfect way to manage all your requirements.