Sticking to a financial plan can help you achieve financial stability, maximise wealth and minimise stress. Picture: Freepik
Financial planning is the process of creating a roadmap to achieve your financial goals, which can include saving retirement, buying a home, funding education or achieving financial independence.
This is according to Robyn Laubscher, Advice and Product Specialist, PSG Wealth.
However, the true value of a financial plan lies in the creation and discipline that is required to stick to it.
Laubscher said that financial planning should be viewed as a lifelong process that requires detailed planning and coordination.
Here are tips to consider when thinking about your financial plan so you can plan for success.
It is essential that you choose a financial adviser that you trust and be honest with, according to Laubscher.
Laubscher said: “It does not matter if you need to meet a few times before you decide you would like to work with him or her. It’s a bit like choosing the right life partner.”
According to Laubscher, the earlier you start, the better it is for you.
Even if you can only afford to start saving a small amount of money to begin with, it is vital that to have a financial plan to work towards.
You need to have an understanding of the wide range of products that are available to you and how they can work for you.
“Think about it this way when you plan a road trip, the road conditions and the destination will determine the type of vehicle you will travel in. You would not go on an off-road trip in a sports car,” Laubscher said.
“Similarly, investment products are vehicles tailored to assist you in reaching your specific financial objectives.”
Your financial plan is dynamic and will change as your circumstances change therefore you should engage with your financial adviser regularly to ensure that the plan remains up to date.
It is important to keep to the financial plan that you have created with the help of your financial adviser.
Your financial adviser will also act as a coach to guide and encourage you to stick to your plan in order to meet your financial goals.
Laubscher said: “Sticking to a financial plan is essential to achieving financial stability, maximising wealth and minimising stress. While it requires discipline, and sometimes involves difficult choices, the benefits far outweigh the challenges.”
“By committing to your plan, you ensure that your financial decisions consistently align with your goals, which will help pave the way to a secure and prosperous future.”
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