Financial planning should be an essential aspect of everyone’s financial life and it can make all the difference when it comes to achieving your financial goals.

But how do you go about creating one, what are its benefits and how can a financial adviser help you with the planning process?

Let’s discuss…

Financial planning

Financial planning often involves breaking down your financial situation and identifying what you want from your finances. It is a unique process that focuses on an individual/business’s finances and is then used to establish achievable short, medium, and long-term goals where plans are then put in place to help you achieve them –  this is often known as a road map.

It regularly involves six steps and is encouraged to be carried out alongside a financial adviser.

How do you create a financial plan?

You should always seek the guidance of a financial adviser when it comes to financial planning as they will be able to offer support and essential guidance throughout the process and recommend a range of strategies that can be used to establish realistic milestones which cover all aspects of what you want to achieve. 

There are typically six steps you’ll be encouraged to follow when creating a financial plan and they are:

1. Figure out your short, medium, and long-term financial goals.
2. Look at what assets and liabilities you have and create a list.
3. Assess your current financial position and consider where you are in relation to your goals.
4. Create and develop a plan (much like a ‘road map’) of steps you can implement to achieve your financial goals.
5. Put your plans into place – start making the changes you need to do in order to reach your short, medium and long-term goals.
6. Constantly review your plans with a financial adviser and make adjustments if something no longer works for you.

Benefits of financial planning

Financial plans can help you to feel more confident about your financial future and with the help of a financial adviser, can also allow you to establish objectives and create a cohesive plan which connects all aspects of your financial life.

They can also suggest practices/strategies which can help you in many other ways such as:

• Making your money work – it’s now more important than ever that we make the most of our money by helping it grow through methods such as investing.
• Helping you to build up an emergency/rainy day fund – life has the knack of throwing unexpected things your way and as such, having funds to fall back on can help you to combat whatever’s thrown at you.
• Helping you to protect yourself and your family – get the peace of mind that your loved ones will be covered in the event of your death by taking out protection policies such as life insurance.
• Helping you to plan for your retirement – using your financial plan and working alongside a financial adviser can help you choose the right retirement options for you and implement strategies to help you generate your desired retirement income.

Financial plans can also be a saving grace when you’re dealing with financial issues that can become complex, time-consuming and need to be resolved. 

Working with a financial adviser on a financial plan

Seeking financial advice is invaluable and is often one of the most important steps you’ll take in your financial life, and as such, it can greatly shape your future.

Working on a financial plan with a qualified and experienced adviser will not only ensure that you understand your finances and how realistic your financial goals are, but also that you will make the most beneficial and informed decisions about your money. 

Independent financial advisers will always give you advice that is relevant to you, and keep your best interest at heart which means that when it comes to financial planning, they will only suggest achievable objectives and strategies for you to implement.

Financial advisers will also be able to conduct regular reviews of your finances and financial plans and make suggestions when things may no longer be working for you. 

Points to take away

Financial planning involves taking a look at your finances and understanding how you can make the most of your money to meet your financial goals.

Creating a financial plan with the help of an adviser can ensure that you are making educated decisions about your money and implementing realistic strategies to help you achieve your short, medium and long-term goals.

To get started with a financial adviser today, why not get in touch with our friendly team of advisers? 

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.

Disclaimer – This article and the information it contains has been written to the best of our knowledge and is not intended to be a guide to follow or a recommendation to pursue certain strategies. Please seek financial advice from a qualified financial adviser before making any decisions about your money. The value of investments (and the income you can derive from them) can fall as well as rise, and you may not get back all the money you invested.