Financial Planning’s Influence

“One is sitting in the shade today because a tree was planted several years ago.” Buffett (Warren)
My underlying presumption as a financial life planner is that planning is a “positive” thing. The importance of planning is commonly recognised as a prerequisite for business success. In the personal environment, however, Benjamin Franklin’s advice that “by failing to prepare, you are planning to fail” often falls on deaf ears. Get the facts about Honolulu Financial Planning you can try this out.
This is usually because people believe they don’t have the time or expertise for personal financial planning, and they also don’t want to spend money on hiring a licenced financial planner, in my experience. Personal financial planning is considered pointless, even spineless, by a few people I’ve met who are so secure in their ability to make and hold substantial fortunes.
So, the aim of this article is to explain why financial life planning is crucial. I’ll discuss some of the latest planning methods, demonstrate how to prepare in reality, and discuss the outcomes.

Is it better to plan or not to plan?
Planning is something I am passionate about because it leads to results. Cold calling to set up meetings to sell insurance was my first sales job in financial services. My boss was fantastic, and she helped me organise my target market, pitch, call strategy, and everything else. My first call was right on, and I was able to arrange an appointment within minutes. My boss knew it was going to work, and my coworkers knew it was going to work. That is exactly what happened.

So, why should we budget and schedule our lives? For four factors, in my opinion:

1. To create a workable system for handling household finances.
2. To reach long-term targets as soon as possible
3. To ensure financial stability in the long run
4. To cope with losses in life

Let’s take a look at each one separately.

1. The budgetary system
Many citizens still do not have access to a financial system or framework. We always enter a fantasy world when it comes to expenditures, which are at the heart of financial planning. Even if a family can have a fairly detailed collection of current financial statements (assets, liabilities, revenue, expenditure, and estate), they are rarely able to project how those statements would look ten, or even five, years from now.

2. Objectives
Unfortunately, we live in an age where wealth is mostly created for its own sake rather than as a way to live a happy life. Money becomes a metaphor for the ego, and financial choices are often taken to defend or massage our egos rather than to help the achievement of our deepest life goals.
Money and life are inextricably linked. It is critical to establish specific life goals in order to provide guidance and to make sound financial decisions. So, whenever I’m asked for feedback on a potential investment, I always ask, “Will investing in this product allow you to achieve your goals more quickly and efficiently?” Frequently, the response is that it won’t.

3. Long-term security
Increased survival has a significant financial effect on families. The Three Drivers of Financial Freedom: savings, compound interest, and asset allocation are the keys to solving this. Although saving means cutting back on expenditure and likely jeopardising essential and immediate life objectives, financial life planning may assist in resolving these challenging short-term-long-term conflicts.

4. Dealing with Unforeseen Circumstances
Life has already kicked you in the teeth and will continue to do so in the future. Accept it and make preparations for it. From an annoyance but not too drastic car breakdown to the death of a near family member, life will give us a wide variety of curveballs. Create contingency plans that include a Security Fund and insurance. Insurance is something that no one enjoys (though I have yet to meet a widow who complained her husband was over insured).

The right to be free
What you’ll get out of well-defined goals and an organised, well-thought-out life and financial strategy to achieve those goals can be summed up in one word: independence.
What exactly is independence, which is a core theme in my work? True freedom comes from establishing and enforcing limits, as well as living a life focused on achieving your objectives within those boundaries. Personal development, or the ability to extend our limits, leads to more independence.