Financial Planning can help you achieve both greater wealth and financial security.  It makes your money work for you, instead of you working for it, allowing you to be free from the bondage of always not having enough. 

 At the same time, however, inadequate or improper planning can be financially disastrous.  An uninsured loss can wipe out your accumulated wealth; a lack of foresight can result in a desperate search for money for emergencies; and insufficient savings for retirement can force you to work beyond your retirement age or a reduction in your lifestyle.

So what is Financial Planning?

 Financial Planning is the process of solving financial problems and achieving financial goals by developing and implementing a personalized “game plan”.  In order to be effective, this “plan” must take into consideration an individual’s overall financial picture.  It must be: 

• Coordinated
• Comprehensive
• Continuous

 A true financial plan does not focus on one aspect or product, but instead seeks to take all areas of planning into consideration when making financial decisions.

So what is included? 

• Cashflow management – this focuses on the day-to-day decisions of allocating money, and its effective use in deciding between paying for living expenses and accumulating assets to meet your financial goals.
• Investment planning and management – this focuses on decisions on accumulating wealth to achieve certain financial goals.  These goals may include purchasing a home, setting up your own business, traveling abroad, or providing for retirement.
• Risk planning and management – this focuses on areas that include the losses of life, income, or property.  It deals with the use of insurance products and strategies.
• Retirement planning and management – this discusses accumulation goals of becoming financially independent. 
• Tax planning and management – this deals with applying an understanding of income tax laws, and estate and inheritance tax issues with the goal of minimizing them.
• Estate planning and management – this final phase of planning deals with the distribution of assets to your heirs while minimizing taxes and costs.

So what are the steps of Financial Planning?

• Identify goals and objectives
• Gather the necessary data
• Analyze present situation and consider alternatives
• Develop strategies to achieve goals.
• Implement the strategies.
• Review and revise periodically.