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Personal financial planning and why it will change your life

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Thursday March 31, 2011 at 10:00am
It is a rare person that does not strive for financial independence, financial security and financial peace of mind. These objectives may seem difficult to define in financial terms but the aim of personal financial planning is to do just that.

Personal financial planning will enable you to define:

  • where you are now financially (your net worth)
  • where you want to get to (in terms of the amount you need in savings to enable you to retire)
  • how you are going to get there (by helping you to create your personal financial plan)

You can have more fun at 55 than you can at 85, you only have one life so why not live it. Many people do not know if they can afford to live life to the full or whether they need to keep working or saving.

A personal financial plan will answer such questions as:

  • What do I have to do to make sure I never run out of money?
  • When can I stop doing the things that are a drag and start doing the things I enjoy?
  • How much do I need to earn to give me what I want out of life?

The personal financial planning process will identify your desired future lifestyle (in terms of money needed to fund that lifestyle), provide a clear plan of how to achieve that lifestyle and also maintain that financial expenditure into old age

And finally a personal financial plan will tell you How Much Is Enough. Or alternatively What IS Your Number, that is the amount of money and resources you need to enjoy the active life you desire, both now and especially when you start to work less or not at all. I highly recommend Lee Eisenberg’s book – The Number for those interested in the idea of Personal Financial Planning.

Andy Parker
Chartered Financial Planner

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