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There are many of us who live under the impression that ‘only rich people need the services of planners.’ The reasoning is usually something to the effect that only such affluent people have money that is ’substantially enough’ to warrant the enlistment of the services of a professional to help in planning its expenditure! But this way of thinking is largely informed by a misunderstanding of what a financial planner really is, and what their role is all about.

A financial planner’s work is not all about helping people ‘plan how they will spend their money.’ In fact, strictly speaking, that is not even one of the things a planner does. A financial planner is, rather, a professional who helps people come up with good financial goals, and plans for the attainment of those goals. Planning how they will be spending their money may, of course, turn out to be a way in which a planner can help them towards the attainment of their goals, but that is by no means the main thing done by the financial planner. The work of the planner is about the identification of financial goals, and the definition of plans for the attainment of those goals.

Once you start viewing a financial planning as a professional who can help you formulate your financial goals and define plans for the attainment of those goals, it will instantly become clear to you that it is in fact people of modest means who need the services of the financial planners more. The assumption here is that the affluent people have attained most of their financial goals (hence their affluent status) – and whilst they still need the services of planners, in order to protect and keep their wealth, it is their humbler counterparts who need those services even more. Continue reading ‘How Modest Income Earners Can Benefit From The Services Of A Financial Planner’ »

Every financial planner will tell you that knowing your current net worth is the first fundamental step in the financial planning process. Taking stock of who you are and where you stand will help you to determine your financial goals and dreams and towards a realistic and practical financial plan.

You need to put down in paper all your current assets and liabilities to complete your net worth statement. Your current assets will include your home, bank accounts, saving accounts, real estate investments, stocks, bonds, cars, and everything else that you possessed. Your liabilities will include the mortgage on your home, real estate loans, car loans and any other debts you may have.

Why is this first step so important in financial planning? The two situations below will help to explain why carrying out this exercise is such an important aspect of the financial planning process:- Continue reading ‘Net Worth Statement – First Step in Financial Planning Process’ »

Have you ever tracked all your expenses for a single month? You can do this by getting all your receipts and writing down everything you spent money on – from utilities to fast food meals. If you’re like most people, you found something shocking. Don’t be embarrassed. It’s better to catch bad spending habits now rather than later. There may come a time when you really need the extra money and you’ll regret spending it all on a few items you didn’t really need.

What’s the next step? If you want to take a real financial assessment of your life, then take a closer look at each expense category to see which items can be reduced. You also need to list your long term goals and your short term goals, because that will motivate you to make needed changes.

Here are some helpful suggestions:

DO look at the little expenses. Some people think that $5.00 a week is nothing to worry about, but that’s $260 a year – a large amount that can be put towards one of your goals. Continue reading ‘Financial Assessment Of Your Life’ »

“Last year I really overspent on Christmas gifts. In fact, I’m probably still paying for some of them now, as I have a large credit card balance that I’m trying to pay down. I really don’t want this to happen again this year, but I feel that once I hit the plazas, I’ll lose control. Please help me to curb my Christmas spending!”

With only about 10 shopping days left to Christmas day, the seasonal spending frenzy is about to get into high gear. Sometimes reasoning and control will fly out the door, as we get caught up in the hype fed to us by the retailers. After all, this is the time of the year when many shop owners make more money than the rest of the year combined!

While we do want to support a vibrant economy, we can’t afford to lose sight of all our financial goals, or worse, incur massive debt. Here are some tips that will help you to control the urge to splurge this Christmas: Continue reading ‘Control Your Christmas Spending’ »