Quick Recap About Financial Planning

Both activities necessitate investment decisions, which many of us are often ill-equipped or inexperienced to make without assistance. As a result, knowing the answers to the four “wives” (why, where, where, and who) and one “husband” (how) questions about investing and financial planning is important. The two most critical prerequisites for making wise investments will be discussed in this article. Checkout Financial Planning Near Me.

I am often asked for investing tips or guidance as a licenced financial planner and a business and financial adviser to small and medium businesses. It makes no difference whether I am a great investment guru or tipster because I will never answer such questions without first learning and recognising the questioner’s financial history, status, and financial goals. This article is not meant to be a guide on investing or financial planning; there are plenty of books on the topic available in any decent high street or online bookstore. Rather, I’d like to discuss what I believe to be the top two pre-requisites that an investor should consider before making an investment decision.

Planning is something we all do on a regular basis, whether it’s for a vacation, a wedding, or some other event or to accomplish a specific goal. However, how many of us really get interested in creating and implementing a detailed personal financial plan? Why not, if not?

Financial planning is described by the Certified Financial Planner Board of Standards, Inc (CFPBSI) as “the method of achieving your life goals through proper financial management.” Life goals are aspirations that we hold dear and would like to see realised, especially throughout our lifetime. Saving for a car or a round-the-world cruise, for example, or spending to offset the impact of inflation in retirement planning, are examples of such targets.When setting goals, we must be realistic and not set goals that would be too difficult to accomplish in the timeframe allotted, otherwise we will become frustrated and abandon the plan entirely.