Professional Financial Advice Using a Financial Planner

How can using a financial planner help you?

Planning your finances properly can allow you to prepare for all scenarios.

One of the tragedies of the recent recession is that people found themselves facing redundancy due to the strain on businesses costs. However if you successfully plan and prepare for all situations, this could be much less stressful. Of course, financial planning can’t protect you from such major problems, but it can be enormously useful when trying to navigate through them. If you’ve budgeted well in the good times, you should have a little extra security to help you through the bad.

What is effective financial planning?

Good financial planning is an ongoing process. It’s about keeping control of your money, knowing what comes in and what goes out, then being able to predict problems before they arise.
Depending on your wealth and circumstances, it might include providing a will to ensure your assets are quickly distributed to those who need them most if you die. It can also help you to manage a secure and relaxing retirement.

Maybe times are tight and you need to look at spending money differently to ensure you have what you need, when it’s needed. If your income is lower than you’d wish, good financial planning can make what you have go further.

Benefits of financial planning

The real benefit of a comprehensive financial plan is that it helps you get a view of the bigger picture. You can define your financial goals and set yourself targets. It gives you a good step-by-step guide to getting where you want to be.

Good financial planning is […] about keeping control of your money, knowing what comes in and what goes out, then being able to predict problems before they arise.

With this information in front of you, making wise financial decisions becomes much easier, such as what to invest in, and how much you can afford to spend on a holiday. It’s the peace of mind that comes with knowing what resources you have available and what your priorities are for future gains.

Where do I begin?

Start by thinking about your life goals, what you want to achieve with your money, and the timescale involved. You probably want to consider this in the context of short, medium, and long-term priorities separately.

Take a look at your assets and liabilities. List them on a piece of paper and remember they’re not always what you think they are. You may consider your car an asset, but unless you’re a taxi driver the chances are it’s not.

Essentially, assets are things that make you money such as a job, pension pot, a savings account, or a buy to let. Liabilities are the things that lose you money, such as your mortgage and car, for example. You can’t sell all your liabilities though – maybe you need your car to get to your job. If house prices are rising quickly then that might be seen as an asset too, particularly if renting is expensive. You’ll always need somewhere to live, and that’ll always cost you money if only on maintenance and running costs.

Essentially, assets are things that make you money such as a job, pension pot, a savings account, or a buy to let. Liabilities are the things that lose you money, such as your mortgage and car.

Our free guide to financial planning can help

With that done, what is your financial situation at present? Do your assets outweigh your liabilities as they should, or is the opposite true with the trouble that can bring? This picture allows you to develop a strategy for achieving your goals over time. Whether this is simply through improving your situation by buying assets and selling liabilities, through to distributing your capital in the most productive way, a good plan will guide you through.

Crucially, financial planning must always be ongoing. Circumstances and values change so be sure to review and renew at periodic intervals.

We’ve put together a guide explaining in more detail how a financial planner can transform the way you look at — and manage — your finances. Download it for free below.

How can a financial planner help you? – find out more

 

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