Top Three Financial Planning Tips
I was recently asked by a journalist working for a British newspaper to share my top three financial planning tips.
You probably won’t be surprised to hear that it was hard to narrow it down to just three bullet points. After all, financial planning can, as we all know, be a complex beast as so many factors and variables have to be considered simultaneously and consistently to ensure that all financial objectives are achieved – and, crucially, when they should be achieved.
However, taking a broad stance on the issue, and generally speaking, I would suggest that my top three tips would be: to think long-term; to stop procrastinating and take action; and to continually review all financial arrangements.
Almost every aspect of life requires long-term planning in order to maximise its chances of success – and it is no different when it comes to financial matters.
To have the best chance of securing financial freedom you must devise a plan – which focuses on long-term goals rather than on short-term circumstances, events or trends – and then stick to it.
And studies show the best long-term financial plans are those carefully devised with an independent financial adviser. In other areas of life, such as sport, all the pros have a coach, and your money is too important to you and your family’s life – and mistakes are too costly – not to seek advice from a financial ‘coach.’
Procrastination can be extremely expensive, especially when it comes to your savings and investments.
The time to save for the future and the time to get your investments in-check is now.
Delaying contributions to a pension for a decade, for instance, can have a detrimental effect on what someone will be able to afford to do in their retirement – you certainly are doing yourself no favours by waiting for that day to come when you believe you have “enough to start saving.” By then you’ll have a lot of catching up to do which will put your finances under stain and you’ll have reduced the chances of hitting your long-term goals.
As Charles Dickens once famously wrote: “Procrastination is the thief of time, collar him.”
Our lives, our circumstances, and our overall objectives often change and evolve. As such, it’s is vital to regularly review that our financial strategiesremain relevant and appropriate, and that they will produce the required outcome to meet the long-term goals.