It should come as no surprise to learn that planning is key to success when dealing with personal finances, as it is in many other areas of our lives. In this article, we are going to explore the reasons it is so important to plan your finances and discuss the best personal financial planning strategies to employ. If you have any questions after finishing, please do not hesitate to call or message us for more information about financial planning strategies and how best to implement them.
Understanding the Importance of Financial Planning
There are several excellent reasons to take financial planning seriously, the most important of which we have listed below. By thinking carefully about how you are going to address each of these reasons when formulating your financial planning strategy, you will increase your chances of success considerably.
- Achieving Your Financial Goals – If you have no idea what you are trying to achieve, it will be virtually impossible to succeed. With this in mind, we urge you to start your financial planning in Australia by thinking about your goals: what assets and personal possessions do you need to lead the lifestyle you desire? Once you have made a list of the goals that are dearest to your heart, it will be much easier for you to come up with a plan that enables you to achieve them all.
- Identifying and Dealing with Financial Risks – As far as financial planning advice is concerned, one of the most valuable tips we can offer is this: try to identify all potential problems before they have time to do any real damage to your finances. If, for example, you really can’t afford the home loan you are about to take out, cancel or postpone it until your cash flow position has improved. A healthy cash flow makes it easier to achieve all sorts of financial goals, no matter how humble or ambitious, so you should grab every opportunity to improve your cash flow. This brings us neatly to the last reason on our list.
- Improving Cash Flow – Looking for ways to improve your cash flow, such as cutting down on expenses and increasing your income, will make it easier to deal with future financial obstacles as and when they appear. Improving cash flow is possibly the single most effective step you can take if you wish to change your financial situation for the better.
For all these reasons and more, it is imperative to formulate an effective personal financial plan sooner rather than later. If you have been meaning to take steps to improve your financial situation for some time, don’t delay any longer: spend some time thinking about your goals and consider contacting a financial advisor for expert advice.
Strategies for Effective Financial Management
When formulating an effective financial management strategy, you need to consider all relevant variables that may affect the outcome of your strategy. The investment opportunities you take advantage of, the tax you have to pay and the money you spend on discretionary purchases are among the most important factors to bear in mind when starting. Other, equally important factors may come into play as your plan matures, but these can usually be addressed as and when they appear with the help of a qualified financial services professional.
In our experience, the easiest way to formulate an effective personal financial planning strategy and ensure you stay on course is to consult a professional advisor, someone who can guide you at each stage and help avoid the most common pitfalls.
How Much Does a Financial Advisor Cost?
The two most frequent questions we are asked are “What is a financial advisor?” and “How much does a financial advisor cost?” We will assume you already know what a financial advisor is since you are here reading this article. As for standard industry fees for financial advice, surveys suggest the total cost is normally within the region of $3,500, but the final figure will depend on several factors, such as where you are, the advisor you choose and how complex your financial strategy needs to be.
If you are keen to learn more about financial planning in Australia, please feel free to contact us. As a well-established financial advisor in Sydney, Antony Vida is ideally placed to provide all the financial planning services you require.
