How to do financial planning? How a Financial Advisor Can Help You Reach Your Financial Goals in Life
●What is financial planning
When it comes to finances, although everyone's situation and goals are different, most people have similar financial problems:
1. How much money do we need to make?
2. Why can't we save money?
3. Is the insurance we bought suitable?
4. Can the investments we make really help me make money?
5. How to manage financial management?
The "financial planning" thing is to redesign the possible plan according to the life style you want to live in accordance with the many uncertainties, and make this plan a map of execution comparison, so that you can make decisions. , there are standards to follow. You don't want everything, but you can't do it; you don't dare to think about anything, but you give up what you could have achieved.
In the life of each of us, if we aim to retire, buy a house, have a child, change jobs, start a business and other goals, what impact will it have on our current income and daily expenditures? Different time points and different assets owned, what different decisions can be produced? This is what keeps everyone from dealing with financial problems properly.
●What problems can financial planning solve?
1. Determine whether the current and future lifestyle you expect is what you think. What is our desired retirement life? Which one best suits our needs, renting or buying? Is there a way we can take responsibility for raising children?
2. Use strategies and data analysis to measure the impact of each goal on your own life or other goals if you want to achieve it. Make the goal you want to achieve, have a specific presentation and judgment criteria. Instead of trying to do something that cannot be achieved, only to find that it does not meet your expectations after you have done it.
3. Under the consideration of the previous two points, what execution strategies can we have, and specific plans for different considerations and bases? Under this premise, when you are ready and executing, determine what you can do and what you can do. If we can find out what the consequences of our actions will bring us, in fact, we will have the freedom of choice, and will not wait until the goal is close at hand to realize that we cannot achieve it, and it is too late to adjust.
●How can financial advisors assist with planning
When a financial consultant assists in planning, it is actually necessary to have a lot of communication and discussion with the executor to formulate a plan and execute a strategy, and only then can he help to revise the plan and deal with accidents. The process is like the following 5 steps:
Step 1: First determine what goals we want to achieve?
Step 2: Consider the time and budget when you want to achieve your goals?
Step 3: According to our values, we decide how to adjust our financial situation to achieve our goals.
Step 4: After setting up various adjustment strategies, how to implement specific plans such as investment, insurance, emergency reserves, revenue and expenditure budget management...etc.
Step 5: Know how to adjust if your goals change or unexpectedly happens.
Just like the thinking process in the picture, each goal can actually be adjusted with current behavior, choose the investment method that suits you, increase your income and reduce expenses, whether to adjust the size of the goal or postpone it, so that future goals and current life can be related. In order to connect and make the most suitable financial planning method for ourselves, so as not to let our life lose balance .
Finances are not just about money, but the impact of our values (author: like shopping, watching TV shows, thinking about cars and houses). What financial advisors can assist executors is that we have a standard for looking at our future and present life, and that our desired goals and lifestyles can be met, and we can make the most suitable decisions for ourselves. When we walk on the road of our own plan, I believe it will bring us a sense of steadiness, which is called "reassurance".
Further reading:
Why not love your money well - "Love Money"
Will you be poor if you don't know how to invest?
The five-step process for financial planning
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