Do you ever think about what you want to achieve in 5, 10 or even 20 years’ time?
If we let our imaginations run wild, and explore what we really, truly want from life, we might be surprised at where we end up: perhaps to travel the world, write that novel, or set up a new business.
The problem is, where do you start, and how can you make sure you achieve these goals?
One of the major reasons people fail at achieving their dreams, however big or small, is because they are too vague, they lack clarity and direction.
Compare that with successful sportspeople, or entrepreneurs who meticulously plot their progress down to the smallest detail, in order to reach their aims.
This is where having a plan can really pay off.
For the mortals among us, a good place to start is having a good financial plan.
This can help you get your lifelong dreams off the ground. It can give you structure, a timescale and a series of clear, actionable steps to follow.
It can also help with:
Goal setting: by thinking about specifics such as how you’d like to spend your retirement, financial planning can help you to clarify your goals
Investment: a proper financial plan acts as a guide in helping you to choose the right types of investments that fit your needs, circumstances and objectives
Risk tolerance: a financial plan will also help you to feel comfortable about the level of risk you’re willing to take to achieve your goals
Filling in the gaps: having a plan will emphasise what’s missing – for example protection insurance, which would help to give you peace of mind that you’re loved ones would be looked after if anything were to happen to you
Financial understanding: knowing what your money is doing and how it’s helping you achieve your goals will give you an overall feeling of confidence and control over your finances.
The key is flexibility
Perhaps the most important part of any plan is that your financial plan is flexible.
Even with the most thorough forecasting in the world, sometimes events can knock us sideways. But that doesn’t mean things can’t recover.
The best financial plans are designed to enable you to put alternative scenarios in place so that your long-term strategy can be altered and fixed. So it doesn’t mean that your overall goal has to change – it might just mean altering the route that ultimately gets you there.
Regularly reviewing and adapting your financial plan is always recommended, no matter what’s happening, because it helps you to stay on track. But right now, it helps us to respond positively to current events and provide you with added peace of mind.
If you’d like to review your direction, we’re here whenever you need us. Or if you’d like to create a plan, we’d love to help you with that too.
This article was prepared by AdvisorStream and is legally licensed for use by AdvisorStream.
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