Financial planning

financial-planning-finger-pointing-on-electronic-board What is a financial plan?

A financial plan mainly reflects the current financial situation of a person, the person’s monetary goals, and the necessary steps to be undertaken to achieve those set goals. A financial plan may be personally formulated or with the aid of a board-certified financial planner. 

What are the steps involved in financial planning? 

  • First and foremost, you must carefully examine your current financial situation. Scrutinize and list all your assets. Assets include physical properties (real estate or motor vehicles), cash in the bank, investments, and anything else you possess of significant monetary value. Afterward, look into your liabilities. Liabilities include any form of debt – credit card debt, student loans, house mortgage, incremental car payments, and so on. Then, inspect your cash flow. Note all sources of income and expenses. These factors show your potential savings, capabilities of investing, and risk tolerance. 
  • Secondly, identify and clearly establish your goals. State your short term and long term monetary goals. 

Financial goals vary. It changes throughout your lifetime and depends on what stage you are in life. 

Early Adulthood

During early adulthood, you prioritize and heavily invest in your education and career. You also start looking into buying your first home and starting a family. 


When you hit mid-life, you look into investing, home renovating, health care planning, managing debt, and retirement planning. 


During your pre-retirement years (roughly twenty years before you plan to retire), you focus on eliminating your debt, helping your children be financially independent, and devising a smart business exit strategy. 


When you retire, you put your attention on protecting your assets, preserving your capital, securing a good health care plan, and drafting your will. 

  • Thirdly, devise a strategy to meet your monetary goals in a realistic and timely manner. Appraise and consider products and services that would help you efficiently attain your set goals. 
  • Fourthly, put your plan into action. Be resolute and stick with the course of action you have cautiously planned and developed. 
  • Lastly, periodically review your plan. Do the results satisfy you? If not, retake all the steps until you derive a plan that satisfactorily meets all your expectations. 

Know that there is no set template for financial planning. Your financial plan is unique and tailored to your personal wants and needs. 

Do I need the assistance of a financial planner?

Making a financial plan of your own is doable but having a financial planner greatly helps. It eases your anxiety because a well-trained expert gives sound recommendations, determines all potential risks involved, and unbiasedly points out the strengths and weaknesses in your plan. 

How can I get in touch with a financial planner?

To Brisbane residents, if you are interested in seeking professional help with your finances, please visit this site: . This website would connect you to Brisbane’s best financial experts

Remember that being prudent and proactive in managing your finances ensures you a stable and comfortable life. The earlier you plan your finances, the better the outcome.

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