5 Steps To Better Financial Planning

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Whilst there are many things in life we cannot control, such as time, the weather and the economy, we do have the power to manipulate how they affect us through careful thought and planning. For example, we can choose how we wish to spend our time, we can check the forecast for rain before deciding to mow the lawn, and we can commit to better financial planning regardless of how well the economy is doing.

When it comes to securing a healthy financial future, making smart decisions with your money by putting the right processes in place is essential. But an effective financial plan requires proper consideration, discipline and expertise.

So how do you start?

We have outlined the five fundamental stages required for taking control of your finances for a confident financial future.


5 Steps To Better Financial Planning


1) Evaluate and understand your current situation

Identifying your current position and how you got there is one of the most important steps to applying better financial practices. How can you finish the race if you don’t even know where the starting line is?

You can begin to examine you existing financial profile by gathering all the relevant data related to your finances, including income and outcome, assets and investments, any monetary obligations and debts, and so on. This will give you a good idea of your personal starting line, as well as help you to pinpoint your strengths and weaknesses.


2) Set realistic goals

Next you need to identify your objectives for the future. Ask yourself; why am I doing this? What matters to me most? What are my pension and investment goals? Where do I see myself in one/five/twenty years time? – all whilst making sure you answer specifically and in as much detail as possible.

From your evaluation, separate your needs from your wants, then set short-term and long-term goals that are both quantifiable and achievable.


3) Create a plan

With the help of your financial advisor, devise a clear and precise strategy that will help you to reach the financial goals you just have laid down. This strategy should incorporate defined timeframes and practical actions that are sustainable for your lifestyle and liabilities so you can set yourself up for success.


4) Put the plan to action

Now it is time to implement your strategies by putting them into practice. Whether your plan involves creating new accounts, closing existing ones, setting up payment automations, diarising monthly meetings with your accountant or securing that investment property, give yourself a deadline for each assignment to hold yourself accountable.


5) Revise your plan

Depending on your short to long-term goals, lock in periodic times either monthly, quarterly or annually to review your strategy and measure its progress. If one plan hasn’t been achievable, be honest with yourself and ask yourself why. Then make any necessary modifications.

Having regular reviewing sessions with your financial advisor will help you to identify economic and circumstance changes within your life that may effect your finances, such as income and family. This will ensure your plans correspond to your current situation and increase your chances of accomplishing your financial goals.

Following a carefully defined process under the guidance of a professional advisor is the best way to secure your finances for you and your family’s future. For more information on better financial planning, please contact our advisory team on 1300 784 084.

Dane Jansen
Dane is a Managing Partner/Responsible Manager at Positive Dynamics. He embraces his leadership skills to provide guidance to his clients giving them the confidence and conviction to achieve financial success.
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