The Financial Journey

“There is only one way to eat an elephant: a bite at a time.”

I’ve previously said that Financial Planning is the creation of long-term, coherent strategies designed to meet individuals’, businesses’ and/or trusts’ financial goals and aspirations. In a nutshell, this is still true, but I have long thought of Financial Planning as a journey with a starting point and a destination.

The starting point is your current financial situation, including your income, expenses, debts, and assets. The destination is your financial objectives, which could be anything from saving for a deposit on a house to planning for retirement.

Along the way, you’ll need to make decisions and take action to get closer to your destination. These might include creating a budget, saving and investing, paying off debt, or making sure you have adequate insurance coverage.

Just like any journey, there may be obstacles along the way that require you to adjust your plans. For example, a job loss, or unexpected expense might require you to re-evaluate your budget and adjust your saving and investment goals.

It’s important to have a roadmap for your journey in the form of a financial plan. This plan should outline your goals, strategies for achieving them, and any contingencies for unexpected events. Regularly reviewing and updating your plan can help ensure that you stay on track and make progress toward your financial goals.

Financial Planners can be seen as navigators. The Financial Planner helps you chart a course toward your financial goals. They help you identify where you currently are in your financial journey, where you want to go, and how to get there. They can also help you navigate unexpected financial challenges or changes in your circumstances.

Overall, #financialplanning is a journey that requires focus, dedication, and perseverance. By taking small steps and staying committed to your goals, you can achieve financial security and peace of mind. This doesn't need to be done alone, as the saying goes, "if you want to go far, go together".