| FINANCIAL PLANNING DOESN'T HURT | | | | the long-term financial needs of providing for education |
| A lot of people plan their day to day activities intent on | | | | of children, mortgaging, and life insurance for family in |
| working efficiently to earn high income. The irony is | | | | the event of death, and so on to consider. I hope you |
| that when the expected income is obtained there isn't | | | | see the point in financial planning from this angle. |
| much thought given to how the income is spent, saved | | | | By planning I do not mean a fussy construct of your |
| or invested. It is not as though these people have no | | | | expenditure, savings and investments in your mind. You |
| medium and long-term financial objectives to reach. | | | | will not benefit from inundating your brain with the |
| The select few who take the trouble to really put pen | | | | complex and diverse information and factors that |
| on paper to plan the use of their income, or in some | | | | have to be considered to ensure an effective financial |
| cases employ the services of certified financial | | | | plan. A lot of factors such as the level of risk you can |
| advisors enjoy great benefits. I can liken an effort to | | | | tolerate, the nature of your job, number of children, |
| attain a medium/long-term goal without planning, to | | | | whether you are married or single, renting or having a |
| trying to fill an empty barrel sitting in your house with | | | | mortgage, and many more have to be listed on paper, |
| water from a pond, using a very porous bucket. You | | | | prioritised and looked at in detail, before arriving at a |
| see you might succeed in filling the bucket, but it will be | | | | financial plan. Let me say in passing that you don't |
| really tiring, and certainly not without causing a lot of | | | | always need a financial advisor to plan your finances; |
| mess on your floors! | | | | you can learn to do it yourself. A financial advisor |
| The amount of uncertainty that is inherent in the future | | | | becomes necessary when you don't have the time to |
| makes it necessary for one to make a lot of financial | | | | do it yourself or when extremely complex financial |
| provision. It is necessary to stash some money away | | | | needs and instruments are under consideration. |
| for emergencies. Allowance has to be made for | | | | The benefits of financial planning are almost obvious |
| reserve to fall on when there is redundancy at work, | | | | from the on-going discourse. It does lead to probing |
| as not all employers pay redundancy sums. Even if | | | | oneself to uncover ones personal circumstances and |
| they do, the amount might not be enough to keep you | | | | true financial needs, clarify financial objectives, and |
| and your family going before you resume work | | | | through in-depth research, secure the appropriate |
| elsewhere. Not all employers provide sick pay, and | | | | financial instruments whose benefits match the |
| those who do cover up to the first month or so. The | | | | financial needs in question. Without doubt, it promotes |
| big mistake many people commit is an over-reliance on | | | | focus and enhances the achievement of short, |
| state help; in practice, the latter does not materialise at | | | | medium and long-term financial goals. |
| all or comes in late and normally quite inadequate. It is | | | | David Opoku |
| wise to have a minimum of 6 months' wages in | | | | BA Hons. in Accounting and Finance ( Currently |
| savings to address any eventualities. Then there are | | | | specialising in Financial Advising). |