Personal financial planning series – your personal financial plan

Today we start a new series on the importance of PERSONAL FINANCIAL PLANNING.

When it comes to Personal Financial Planning, many are…

• battling to make ends meet,
• under insured,
• getting deeper into debt,
• not planning or setting goals for the future,
• not saving enough for short term contingencies,
• nor investing to build up sufficient income to fund retirement.

You can set up a personal financial plan!

If you are battling with your money management, I want to encourage you to review your PERSONAL FINANCIAL PLAN. No matter how messed up your cash flow is, you can turn your situation around. You will, however, need to make a few changes…

Dave Ramsey says that “If you want something you have never had, you’ll need to do something you’ve never done!”

I want to encourage you to form good financial habits. 

A habit is something that you practice regularly, which then becomes a routine, or just another way of life.

The decisions you make today will determine your tomorrow.

Your financial habits, whether good or bad, will have an impact on your financial future, either for the better or for the worse.

If you choose to form some good financial habits, you can start building towards a fruitful financial future.

So, today, I want to talk to you about the importance of personal financial planning.

We all have unique financial goals, objectives and dreams.

Financial Planning is a process of ensuring that you have the right financial plan in place to ensure that you can meet your current needs, while planning ahead so that you can achieve your future dreams.

Financial planning involves assessing your current needs and your future goals, and constructing a plan to help you get from where you are today to where you want to be in the future. This is all done while ensuring that you have the right protection in place on the journey.

Areas to consider

1.) Money management:

• Budgeting and Cash Flow Planning
• Setting goals

2.) Risk protection:

• Estate Planning (Will),
• Risk Protection for your family and yourself,
• Life cover,
• Dread disease cover,
• Disability cover,
• Income Protection,
• Retrenchment cover,
• Healthcare cover and
• Insurance

3.) Wealth management:

Wealth Creation:

• You need a plan to build up your savings for short term contingency needs.
• You need an investment plan to build up your wealth investment portfolio, by generating real growth to fund your medium and long term objectives.
• You also need to plan for retirement.

Wealth Preservation:

• You need to plan for retirement.
• You need to secure an inflation linked income to fund your golden years.
• You also need to preserve your money against the impact of inflation.

I want to suggest that you set up a Personal Financial Plan to take care of your current needs, to provide financial protection, and to build towards financial freedom.  

Set up a financial plan to build towards financial freedom!

A well-constructed Financial Plan should be made up of the following components…

Money Management:

A GOOD BUDGET SHOULD HELP YOU TO MANAGE YOUR MONEY WELL.

“Good planning and hard work lead to prosperity, but hasty short cuts lead to poverty.” (Proverbs 21:5)

Risk Planning:

A COMPREHENSIVE FINANCIAL PLANNING AND ESTATE DUTY ANALYSIS SHOULD ENSURE THAT YOU AND YOUR LOVED ONES ARE PROTECTED IN THE EVENT OF A TRAUMATIC OR UNFORSEEN EVENT.

“The prudent see danger and take refuge, but the simple keep going and pay the penalty.” (Proverbs 27:12)

Wealth management:

AN INVESTMENT PLANNING ANALYSIS AND RETIREMENT PLANNING FORECASTING ANALYSIS SHOULD ENSURE THAT YOU ARE ABLE TO MEET YOUR NEEDS ACROSS YOUR VARIOUS LIFE STAGES, WHILE ALSO ENSURING THAT YOU CAN ENJOY YOUR GOLDEN YEARS AND ACHIEVE YOUR GOALS AND DREAMS.

“The wise man saves for the future but the foolish man spends whatever he gets.” (Proverbs 21:20)

“… he who gathers money little by little makes it grow.” (Proverbs 13:11)

Get advice on how to construct your personal financial plan…

Your Personal Financial Plan is your wealth building and protection strategy to get from where you are to where you want to be. It is therefore vital that you get the right advice to get you on the road towards financial freedom.

“The way of a fool is right in his own eyes, But a wise man is he who listens to counsel.” (Proverbs 12:15)

A good financial advisor will be able to help you…

• Take a good look at your current financial situation from all angles, as well as help you review your unique needs, goals and dreams.
• Assess where you are at and what you are planning to achieve.
• Analyze your current situation and your objectives.
• To construct a personal financial plan to meet your current needs and to help you work towards achieving your goals.
• Implement the best solution in the most cost-efficient manner.
• Review and monitor your plan to ensure that you stay on track, and ensure that you achieve your goals and dreams.

Note on advice:

Make sure that you find the right advisor who can walk the journey with you. The right advisor should be able to construct a plan that will take care of your current needs and help you achieve your goals and dreams in the most affordable manner. The right financial advisor should be able to offer you a one stop solution that can offer you the full spectrum of product solutions in the most cost-efficient manner.

“Where there is no guidance the people fall” (Proverbs 11:14)

Conclusion:

I want to encourage you to review your PERSONAL FINANCIAL PLAN.

If you are under-insured or not saving and investing, please get some advice on how best to construct a plan so that you can provide the necessary PROTECTION for your loved ones and yourself, while ensuring that you MANAGE YOUR MONEY WELL, so that you can build a WEALTH PLAN to meet your short term needs and future dreams.

Set yourself up for a brighter tomorrow. God bless you.