The Value of Financial Planning

Financial planning is making sure that you're on track to achieving your financial goals. Regardless of the goal, whether saving for retirement, buying a house, or paying for your children’s education, having a clear financial plan is crucial to staying on course.

The key is to start by setting specific, measurable financial goals. For example, rather than saying “I want to save for retirement,” you should set a target like “I want to save $500 a month towards retirement.” Having clear goals makes it easier to develop a plan to achieve them.

Once your goals are set, break them down into manageable steps. If you want to buy a house, for instance, calculate what you will need for a down payment and then create a savings plan to reach that specific goal. This makes it more likely that when you are ready to buy the house you have the funds available for your deposit without having to take on additional debt.

Financial planning isn’t just about saving; it also includes managing other aspects of your finances such as your debt, investments, and ensuring that you have relevant safeguards in place such as insurance and emergency funds to get you through an unexpected event.

A key part of financial planning is revisiting your plan regularly. Life circumstances change, and your goals may evolve, so it’s important to adjust your plan as things continue to change. Working with a professional financial planner can help you to create a personalized strategy based on your goals, income, and financial situation.

Ultimately, having a financial plan provides you with a roadmap to achieving financial security. This plan will help you to make informed decisions, track your progress over time, and stay focused on whatever you consider to be important in your future.

Written by Gayle Marshall, Director - Strategic Projects