You are the focus of the Financial Planning process. As such, the results you get from working with us are as much your responsibility as ours. To achieve the best results from your Financial Planning engagement, you will need to be prepared to avoid some of the common mistakes by considering the following advice:
Involve your spouse in the process of Financial Planning
You and your spouse or family are important for the process. You need to discuss the goals of family with your spouse and together both of you decide about the future goals.
Set Measurable Goals
Set specific targets of what you want to achieve and when you want to achieve results. For example, instead of saying you want to be ‘comfortable’ when you retire or that you want your children to attend ‘good’ schools, you need to quantify what ‘comfortable’ and ‘good’ mean so that you’ll know when you’ve reached your goals.
Understand the effect of each financial decision
Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or a decision about your child’s education may affect when and how you meet your retirement goals. Remember that all of your financial decisions are interrelated. So soon you start planning better results you have by moving in the proper direction.
Start planning as soon as you can
Don’t delay your Financial Planning. People, who save or invest small amounts of money early, and often, tend to do better than those who wait until later in life. Similarly, by developing good Financial Planning habits such as saving, budgeting, investing in proper direction you may achieve your goals with peace of mind and by regularly reviewing your finances early in life, you will be better prepared to meet life changes and handle emergencies.
Be realistic in your expectations
Financial Planning is a common sense disciplined approach to managing your finances to reach life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control such as inflation or changes in the stock market or interest rates will affect your Financial Planning results. So you need to evaluate your situation with us at a fixed frequency.
Re-evaluate your financial situation periodically
Financial Planning is a dynamic process. Your financial goals may change over the years due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your Financial Plan as time goes by to reflect these changes so that you stay on track with your long-term goals.