By: Robyn Laubscher
Benjamin Franklin’s famous quote about planning says, “If you fail to plan, you are planning to fail.” This quote couldn’t be more appropriate than about financial planning.
What does financial planning entail?
Financial planning is the process of creating a roadmap to achieve your financial goals, whether they involve saving for retirement, purchasing a home, funding education, or simply achieving financial independence. However, the true value of a financial plan not only lies in its creation but also in the discipline required to stick to it.
As most of the world watched the Olympic Games in France in July and August this year, I was intrigued by how such an incredible spectacle is possible to achieve. From the opening ceremony to each athlete and their journey to the very basic logistics of the event, hosting the Games is an immense undertaking that requires years of detailed planning and coordination. The process generally spans over a decade, from the initial bidding phase to the actual event. Financial planning is no different. It requires detailed planning and coordination, and it should be viewed as a lifelong process.
Planning for success
Here are a few tips to consider when thinking about your financial plan.
Find the right adviser
Choose a financial adviser that you trust and can be honest with. It doesn’t matter if you need to meet a few times before you decide you would like to work with him or her (a bit like choosing the right life partner).
Start early
The earlier you start, the better. Even if you can only afford to save a small amount of money to begin with, it is important to have a plan to work towards.
Select the right product
Understand the wide range of products that are available and how they can work for you. Think about it this way – when you plan a road trip, the road conditions and the destination will determine the type of vehicle you will travel in. You wouldn’t go on an offroad trip in a sports car. Similarly, investment products are vehicles tailored to assist you in reaching your specific financial objectives.
Remember that circumstances change
Your financial plan is dynamic and will change as your circumstances change, so engage with your financial adviser often to ensure your plan remains up to date.
Stick to the plan
Keep to the financial plan you have created with the help of your financial adviser. They will also act as a coach to guide and encourage you to adhere to your plan in order to meet your financial goals.
Sticking to a financial plan is essential to achieving financial stability, maximising wealth, and minimising stress. While it requires discipline, and sometimes involves difficult choices, the benefits far outweigh the challenges. By committing to your plan, you ensure that your financial decisions consistently align with your goals, which will help pave the way to a secure and prosperous future. Ultimately, the discipline of following through on your financial plan is the key to unlocking the full potential of your financial life.
* Laubscher is an advice and product specialist at PSG Wealth.
PERSONAL FINANCE