Financial Planning is for Everyone

Financial Planning is for Everyone

Date : 22 Sep 2017
posted By : eff_admin

Along with polo, fine wine and opera, financial planning is often mistakenly regarded as the preserve of a certain demographic: the wealthy, socially elite, privately educated and those aged over 50. This rather archaic view is grossly erroneous; its also incredibly damaging, as it is putting an invisible barrier between the benefits of financial planning and those who would actually gain the most from it. The truth is, financial planning is for everyone and the sooner you embrace it, the more you can benefit.

Financial planning offers a whole host of advantages, most importantly giving you the ability to live more comfortably and confidently, which, Im sure you will agree, are values we all strive towards. Thats why everyone should adapt financial planning.

Dont believe me? Well, lets start by considering exactly what financial planning is. At Efficient Portfolio we define this term as a mechanism that enables people to clarify and realise their goals and dreams. We equip our clients with expert knowledge, give them access to a range of tools and services to support them on their journey and continually review and assess their position, to make sure theyre on track. Youll note that theres no mention of wealth, age, social position or educational background.

To use a rather apt simile, financial planning is like compound interest: the sooner you start, the more you will get back. More than that, the earlier in life you start to save, the less you have to regularly put away in order to achieve your desired goal. The same analogy can be applied to financial planning in general. USA based Chartered Financial Planner Tom Pemberton sums this up best when he says The sooner you start making smart decisions, the sooner you know where you want to go, and if you have a plan to get there, the more likely you are to attain it. The longer you wait, the more you have to save to make that goal.[1]

I can almost hear some of shouting thats great, but what if I havent got any money in the first place? To quote Pemberton again The way you get into the higher income bracket is to have a financial plan. [2] If you dont have a goal, aim or ambition have can you ever achieve it? Sitting down to write your goals will give you clarity on what you need to do to reach your target. Whether thats done on your own or with a qualified professional, its essential that if you want to make a change then you have to plot out the steps you need to take and act upon them. Whether your goal is small, like go on holiday next year, or huge, like being financially free by the age of 40, by planning you will see what you need to do to get ahead. For those without any spare income, planning, using money management systems, could also show you how to reduce your outgoings and maximise your saving potential. So initial lack of wealth is absolutely not a reason against financial planning!

Hopefully you can see that my point is quite simple: financial planning is not just for the wealthy and its certainly not reserved for people over a certain age. In fact, financial planning is for everyone and can benefit all and sundry. And, in my opinion, there has never been a better time to start encouraging the population, at all levels, to tackle their financial concerns.

From a survey conducted in March 2016 by The Money Charity, researchers found that, in the UK, 222 people a day are declared insolvent or bankrupt.[3] Coupled with this, the average total debt per household, including mortgages, was 54,080 in January 2016 and currently 25 properties are repossessed every day.[4] The general populous finances seem to be in tatters, which is shocking when you learn that unemployment rates have consistently fallen in the last 6 months. So what are we doing wrong? More of us are earning, yet a huge proportion of us are in serious debt and certainly not fulfilling our lifetime goals. The answer is, were not planning our finances!

So what is the solution? Obviously financial planning, but more so education and the normalisation of talking about money, our goals and our concerns. Its not often that I praise UK banks, but a certain institute, the one represented by the blue eagle, is actually leading the way in this field, by providing financial education to children from the ages of 4-16. This bank is teaching children how to budget, how to pay bills, how to save and most importantly how to plan. Now, if a 4 year old is adopting financial planning, there is absolutely no excuse why you cant.

As an innovative and forward thinking firm, Efficient Portfolio want to be pioneers in the financial planning world, by providing financial planning for everyone. We believe that financial planning is one of the pillars to a successful future. It helps you to gain clarity and direction, builds wealth, mitigates against risks and maximises your future potential. Our firm also regularly reviews our clients financial plans, so financial planning is also used to measure progression, reassess goals, to make sure they are still realistic, and overcome small obstacles before they become insurmountable hurdles. By doing all of this, our financial planning service ensures that clients can lead comfortable, confident and fulfilled lives.

This year our ultimate goal is to provide financial planning on a variety of levels and in a range of mediums: from our expert Life Planning Service through to free, educational webinars, seminars and workshops, to help people at all stages of their financial planning journeys. We are also in discussions with several financial technology companies, with the goal of putting together a self-administered system, where clients can manage their own savings and investments online.

If you want to reach your goals, then you must first plan your finances. Financial planning really is for everyone, so take the first step today and decide what it is you want to achieve.

[1] Forbes Magazine Online, August 2013

[2] Forbes Magazine Online, August 2013

[3] The Money Charity, The Money Statistics March 2016

[4] The Money Charity, The Money Statistics March 2016