Save for the future. Work hard to enjoy your life now and in the future. You may have heard these words before but may be a bit skeptical if they are one size fits all sentiments. You are not the only one, many people out there are unsure if they can save for the future, especially with the different financial crises happening all over the world and the uncertainty of tomorrow.
If you feel that you don’t earn enough to save, is financial planning for you? What is the way to go about it? How do you achieve financial freedom? How do you remove that doubt and start planning financially for the future, for your children’s college fund, or retirement home? And what is the best approach that can work for you?
You may be a hard worker or are talented and may be earning a lot today, but like many other people what you really want is to be able to enjoy life now and still live better in the future, when you’re older and can’t work twice as hard or work at all. To get to that point, when you can share sunsets or take road trips with your mate or friends without a worry about when you will have to go back to work to cover your expenses, you need to plan your life financially.
Planning and preparing can help you achieve financial freedom and that nice spot for sunsets. But as said, some people have doubts. Can planning today really help in the future? And how do you do it? Yes, you can plan for tomorrow financially and can reap the results but to get there you need the right approach that is good and workable not just on paper but in practice.
So, what is the right approach to financial planning?
While you may have read about different pillars of financial freedom and planning, they are only part of the package, and a lot of the financial plans out there are stuck at this stage. The problem with these types of approaches is that they sometimes forget; that you are not like the person sitting next to you and what makes you different and unique will also greatly affect any type of planning you may make for the future. So, what is the right approach?
The right and new approach to financial planning takes into account what your life is all about, one that is tailor-made for you and not a mirror of your neighbors. This approach to financial planning does not forgo the essential pillars in this industry such as investing your money, ensuring your assets and valuables, tax planning, planning for your retirement, and what happens to your assets after you die (estate planning).
The new approach to financial planning is neither rigid nor generic, rather it focuses on your life, where you are now, and how you want to live now and in the future. It builds on your life objectives, focuses on your priorities, and helps you create a financial plan that is meaningful and achievable for you and you alone.
With this type of approach, you can hope and dream of endless possibilities that truly capture your life hence the name, financial life planning, and it makes a whole lot of difference from the old way of doing things. For example, if you’re trying to save and invest, a more personal approach will take into account what problems you currently are going through or what circumstances might put a dent in your savings. Then work around such problems and find the right investments for your money.
A more personal life approach to financial planning accepts the differences in individuals, their circumstances, drive, hopes, and future plans and is set to achieve more results. It goes beyond just trying to identify where your money can go but can include identifying things that you can invest in that are close to your heart and dreams. It becomes less about what your financial planner has chosen for you and more about you being in control of your finances and what you want for the future.
But what if you feel that you earn less than the average person? Many people with less income feel that saving, let alone investing is something they will never be able to do and end up living with no plan at all. Others can only keep little for a rainy day and not the far future and some financial planning approaches may indeed make you feel as if you don’t earn enough to even have a financial plan and can never have anything beyond a rainy day or plan for that trip in the future.
If that is how you have felt before, this new approach to financial planning is for you. It’s more personal; more life centered and will embrace your circumstances and work with them. It will aim to protect the little you have and help you grow it while allowing you to live within your means. Financial life planning is for everyone and the result of every plan captures the essence of each client as an individual, not a group.
If you already have a financial plan that you have been using for some time but are unsure of or you feel that your income is minimal or you feel that you are ready to put your foot in the water of planning your life financially, start by discovering your life, the elements that will contribute and affect your finances over time such as family circumstances, priorities even dreams and then be ready to commit to a plan that is more practical and worth the effort.
If you offer financial planning services remember, that making financial planning more personal and attached to a person or client gives it more meaning and can achieve results than using the generic approaches for every client you work with. Everything else falls into place with financial life planning.
