| Did you realised today, when you go to the bank, unit | | | | Financial planning is also about making financial choices. |
| trust or insurance company, financial planning seems to | | | | What are they? Some of the decisions will include |
| be the new buzzword amongst clients and individuals | | | | things like: |
| in the investment and banking field? | | | | - Should I spend all my takings today? Or should I |
| But, what IS financial planning, actually? Is it only for the | | | | preserve a segment of it for rainly days? |
| rich or individuals who possess cash to invest? Or is it | | | | - Should I clear all my debts right now? Or should I |
| for those who desire to buy insurance and unit trusts? | | | | enlarge my savings for retirement instead? |
| Or is it somthing that we layman can achieve? | | | | - Should I layout for my child's education? Or should I |
| The truth is that whoever has financial strength will | | | | let him look for his own education applications and |
| meet their financial goals. However, in spite of of how | | | | apply for a student's loan? |
| much cash you are making, financial planning will assist | | | | These are the decisions that can make or break your |
| you fulfil both greater wealth and financial security. | | | | personal bank. |
| Insufficient or poor financial supervision can certainly | | | | So, what is included in Financial Planning? If you were |
| show the way to unthinkable financial disasters. Even | | | | to wonder what areas wealth management would |
| the rich can become a pauper due to poor financial | | | | cover the following: |
| planning. | | | | - Cash flow management: The ability to manage the |
| For instance, an uninsured loss can clear out all your | | | | liquidity of your cash - Investment planning: The |
| accumulated riches. Insufficient savings for retirement | | | | decision of making more money with the extra cash |
| can cause one into a lower quality of living or even | | | | you have on hand. - Insurance planning: Planning for the |
| worse, the postpone of retirement and numerous | | | | unexpected situations - Retirement planning: Knowing |
| other fiscal catastrophes that are far too depressing | | | | how much you can have when you stop working - |
| to be named! | | | | Estate planning: Knowing and managing the ultimate |
| You wouldn't want to be in this situation! All these can | | | | value of your property. |
| be avoided by proper financial planning! | | | | All in all, an ideal financial plan does not focus on one |
| So in a nutshell, financial planning involves engaging a | | | | angle or product exclusively. One should not look at |
| broad view of one's financial affairs looking over many | | | | just one aspect of the planning. It involves looking at all |
| areas of wealth supervision and then running through a | | | | areas of planning, putting them together in perspective |
| step-by-step process to solve financial problems and | | | | and finally the careful consideration when making |
| achieve financial goals. | | | | financial decisions. |