Financial Planning
We are with you every step of the way
At Secure Your Future, we are very interested in helping you carry out excellent financial planning to ensure you stay financially afloat. Here, we take a comprehensive look at your savings, budgeting, and investment culture and guide you on how to excel in each of them.
Our financial planning process is rigorous and all-encompassing. It ensures that nothing is left to chance and eliminates the possibility of a mistake to the barest minimum. Thus, at the earliest opportunity, we will try to learn as much about your financial history as possible. We like to know what your financial goals are and what stage you currently are at regarding fulfilling them. We also consider your assets and liabilities. For liabilities like debts, we work with you to decipher ways of eliminating those.
Deep Dive
It might be necessary to take a deep dive into your income and earnings. This information helps us make a lot of decisions. For instance, any advice on budgeting will depend on how much you currently earn. When we have obtained these pieces of information from you, we can then decide on the financial plan to implement for you.
Your Needs
Part of our job during financial planning includes recommending financial products. Then, armed with information garnered from our conversations with you, we do our research to discover the best product for you. We stay on to ascertain that the product works maximally and delivers the promised result.
Financial Planning Process: A Step-by-Step Guide
Understanding the financial planning process is crucial for achieving your long-term financial goals.
Whether you’re just starting your career, planning for retirement, or looking to secure your family’s future, this comprehensive guide will walk you through each step of creating and implementing a successful financial plan.
What Is Financial Planning?
Financial planning is a systematic approach to managing your money and achieving your life goals through proper management of your finances.
It’s not just about investing or saving – it’s a comprehensive process that covers everything from daily budgeting to long-term wealth creation.
The 6 Steps in Financial Planning:
1 Establish Your Financial Goals
The foundation of any financial plan starts with clear, measurable goals:
Short-term goals (1-3 years)
– Building an emergency fund
– Paying off credit card debt
– Saving for a house deposit
Medium-term goals (3-7 years)
– Buying a property
– Starting a business
– Children’s education fund
Long-term goals (7+ years)
– Retirement planning
– Investment portfolio growth
– Legacy planning
2 Gather Financial Information
We create a comprehensive picture of your current financial situation with a Factfind questionnaire:
Income sources
– Salary
– Rental income
– Investment returns
– Side hustle earnings
Expenses
– Fixed costs (mortgage, utilities)
– Variable costs (groceries, entertainment)
– Periodic expenses (insurance, property tax)
Assets and Liabilities
– Property/investments
– Savings/debts and loans
3 Analyse Your Financial Position
This critical step involves:
– Calculating net worth
– Reviewing cash flow
– Assessing debt levels
– Evaluating insurance coverage
– Checking credit score
– Reviewing existing investments
4 Develop Your Financial Plan
Based on your analysis, create a personalised strategy that includes:
Budgeting and Savings
– Monthly saving targets
– Expense reduction strategies
– Emergency fund establishment
Investment Strategy
– Risk tolerance assessment
– Asset allocation
– Investment vehicle selection
– Tax-efficient investing
Protection Planning
– Life insurance needs
– Income protection
– Serious Illness
Retirement Planning
– Pension contributions
– State pension entitlements
– Additional retirement savings
– Retirement income projections
5 Implement Your Plan
Put your financial plan into action:
- Open necessary accounts
- Set up automatic transfers
- Purchase required insurance
- Make investment allocations
- Update estate planning documents
- Adjust spending habits
6 Monitor and Review
Regular review is essential for success:
– Annual comprehensive review
– Life event triggers for review
– Marriage/divorce
– Birth of children
– Career changes
– Inheritance
– Property purchase/sale
Creating Your Personal Financial Planning Checklist
To ensure you’re covering all bases, use this essential checklist:
Immediate Actions
– [ ] Calculate net worth
– [ ] Track monthly expenses
– [ ] Set up emergency fund
– [ ] Review insurance coverage
– [ ] Check pension contributions
Short-Term Planning
– [ ] Debt reduction strategy
– [ ] Savings goals
– [ ] Budget creation
– [ ] Tax planning
Long-Term Planning
– [ ] Investment strategy
– [ ] Retirement planning
– [ ] Estate planning
– [ ] Education funding
– [ ] Legacy planning
Common Financial Planning Challenges
1 Insufficient Emergency Fund
– Aim for 3-6 months of expenses
– Keep funds easily accessible
– Regular contributions
2 Inadequate Protection
– Review insurance coverage
– Update beneficiaries
– Consider income protection
3 Poor Investment Diversification
– Spread risk across asset classes
– Consider geographical diversity
– Regular portfolio rebalancing
4 Incomplete Estate Planning
– Create/update will
– Power of attorney
– Trust considerations
– Tax efficiency planning
Professional Financial Planning Support
While self-directed financial planning is possible, professional advice can be valuable for:
- Complex financial situations
- Tax planning
- Investment strategy
- Estate planning
- Business owners
- High net worth individuals
The financial planning process is an ongoing journey rather than a one-time event.
By following these steps and regularly reviewing your progress, you can create a robust financial foundation for your future. Remember that financial plans should be flexible and adapt to your changing life circumstances and goals.