Financial Planning

Posted in Articles on Jan 21, 2009



Comprehensive Financial Planning is a professional service for clients who need objective assistance in organizing their corporate or personal financial affairs to more readily achieve their goals. It is also a systematic approach whereby the financial planner helps the customer to maximize his existing financial resources by utilizing financial tools to achieve his financial goals. Even though one of the most significant factors in our life is the state of our personal finances, we rarely spend time on managing them since unlike business, we are not accountable to any one for our personal financial goals and results.

Here are three basic questions that you will answer during financial planning:

* Where are you today? What is your current financial situation?
* Will you be able to get there? How do you plan to achieve your vision?
* Where do you want to get to? What is your vision of your future financial situation?

During the financial planning process you analyze what is your financial needs and goals are. In other words, financial planning is the process of meeting your life goals through proper management of your finances. Life goals can include buying a home, saving for your children’s education or planning for your retirement. It is a process that consists of specific steps that help you to take a big-picture look at where you are financially. Using these steps you can work out where you are now, what you may need in the future and what you must do to reach your goals. We can make a much larger contribution in every area of our life when our personal finances, investments and taxation are properly planned up.

Financial planning is simple mathematics. There are 3 major components :

* Financial Resources (FR)
* Financial Tools (FT)
* Financial Goals (FG)

When you want to maximize your existing financial resources by using various financial tools to achieve your financial goal, is financial planning.

The Financial Planning process aims to establish a comprehensive plan to meet the client’s objectives. These steps are:

o Gathering data
o Establishing the client’s objectives, goals and aims
o Recommending a plan of action
o Processing and analyzing information
o Implementing the plan when agreed and also reviewing the plan regularly

Financial plans must be dynamic to reflect the changing socio-economic environment, as well as the stage of life that you are in. Yet, very few of us bother to review our financial situation as we move from one stage of life to another. A financial planner, is someone who uses the financial planning process to help you figure out how to meet your life goals. The planner can take a `big picture` view of your financial situation and make financial planning recommendations that are right for you. The planner can look at all of your needs including budgeting and saving, taxes, investments, insurance and retirement planning. he best time to review your financial situation is today! And you must do this as regularly as you can because your life is never static.

Unless you start early, you might find that time has passed you by. You will get older, your children will have growing needs, your expenses will rise…..and, before you know it, you may be regretting but not planning the future. So go ahead, and plan your future now.

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