What is a financial plan? Is it about how much I spend every month?
The balance between what you earn and what you spend is part of it. However, a financial plan is more about identifying, prioritising and then meeting (as far as possible) your financial needs.
What do you mean by my “financial needs” ?
Financial needs change over time. Some of the obvious ones are
1. Borrowing : e.g. a mortgage for a new house.
2. Savings : Build a sum from regular surplus savings over time.
However, other financial needs that are often overlooked are :
3. Protection : How would our loved ones survive upon our death. Do we have assurance to pay off loans and to provide them with income ? What happens if I become seriously ill and unable to work ?
4. Retirement : How much money do I need in my retirement ? How much do I need to save now to get there ?
OK, and how does a financial plan help?
Very often people take a short-term, piecemeal approach to financial planning and have no real focus on preparing for retirement or protecting against unexpected, adverse events.
What are the steps in building a financial plan with AM Financial?
STEP 1 : A fact-find to build a picture of current circumstances and particular financial needs you have.
STEP 2 : To identify all financial needs and to prioritise them
STEP 3 : Make suitable recommendations to meet, as far as possible, your unfulfilled financial needs.
STEP 4 : Review the plan over time and in particular when circumstances change.
What do I do next ?
If you are interested in getting on top of all your financial needs, get in touch with AM Financial and we can discuss.