Get more out of life with a financial plan!

10 April 2015

There are more benefits to having a financial plan than you may realise. A comprehensive financial plan can help you:

• Balance today's needs with your goals for the future;
• Adapt to changes in your circumstances and needs;
• Prepare for unexpected emergencies;
• Achieve your life goals;
• Experience peace of mind;

What is Financial Planning?

Financial planning is the process of structuring, arranging and managing your financial affairs to best meet your life goals. These can be as short term as saving for a car, to long term planning for retirement. Most importantly, financial planning also looks at how it all fits together so that you achieve financial certainty and clarity on your current and future financial well-being.

Financial planning works for everyone because it is not a one size fits all solution. A sound plan will be tailored to your unique and specific needs. It is not a one-time activity, but rather an on-going process that adapts to your changing needs, circumstances and goals. From buying a house, to ensuring your loved ones are taken care of should something happen to you, to paying for a child’s education – a financial plan will help you achieve whatever you want out of life.

Make financial planning work for you. To make sure you get the most out of financial planning, keep these things in mind:

• Understand the big picture - Each decision you make may affect other areas of your life.
• Planning is about balance – Financial planning is not about denying yourself today for some distant tomorrow. Planning for tomorrow allows you to live for today.
• Set measurable goals – Set specific targets that will help you achieve what you want, when you want it.
• Be realistic – Even with a financial plan, you are unlikely to see all of your financial problems solved overnight.
• Re-evaluate periodically – Financial planning is a dynamic process. Your financial plan will need to be reviewed and updated regularly to take life changes into consideration, and ensure you remain on track.
• Be informed – Know what to ask from your financial planner and what to expect from the engagement.

Understand the value of professional advice, look for the CERTIFIED FINANCIAL PLANNER® or CFP® mark.

A financial plan can help you achieve your goals but make sure you are getting your advice from a professional. Someone who is qualified, understands you and your goals, and has demonstrated the competence and ethical judgement required to take on the responsibility of helping you build your financial future. Throughout most of South Africa, financial planning is not regulated. This means that anyone can claim to be a financial planner, even though he may not possess the competence, experience, education and ethical commitment to ensure your best interest is always served.

This is your assurance that a financial planner is committed to internationally recognised professional standards of competence, ethics and practice. CFP® professionals meet the strict standards required of the designation. CFP® professionals can be found throughout the financial services industry. In South Africa, the standards for CFP® professionals are set and enforced by the Financial Planning Institute of Southern Africa (FPI) the only not-for-profit organisation dedicated to ensuring the financial planning needs of South Africans are well served.

People who engage in comprehensive financial planning feel closer to achieving their life goals.

Source: http://bit.ly/1OulJt8