Financial Planning is a comprehensive financial analysis that sets goals, creates a budget and builds an emergency fund. It also includes a well-structured investment plan to take you from where you are now to where you want to be in the future. Financial Planning helps you to have peace of mind in the knowledge that your finances are secure, giving you the confidence to pursue a fulfilling life.

The first step in developing a financial plan is to gain a clear picture of your current financial position by collating all relevant documents and data. This meticulous evaluation provides a clear line of sight into your financial standing and will uncover opportunities to trim expenses or redirect resources toward savings or debt pay-down.

Financial Planning Tips for a Stable Future

Next, we set short-term, medium-term and long-term goals that are realistic within the context of your current financial situation. These goals may include building an emergency fund, saving for a new home or paying down high-interest debt. They should be specific, measurable, achievable, relevant and time-bound.

A good financial plan should include contingencies to help alleviate the pressures that often accompany unexpected events, such as the loss of a job or a costly illness. This typically means having three to six months’ worth of living expenses saved in a liquid account that is easily accessible. This savings goal is commonly supplemented with insurance policies such as life, income and critical illness cover to ensure that your lifestyle won’t be compromised if the worst happens.