Financial planning

A financial planner is a professional ethic which helps people deal with various financial matter, issues through proper planning and having a good strategic thinking, which includes but is not limited to these major areas: cash flow management, financial education planning, retirement management, investment management, insurance planning, tax planning, estate management, business succession planning (for business owners), operational planning and strategic managements

The work engaged in by this Guru is commonly known as financial planning. In carrying out the planning issues, he is guided by the financial planning process to create a financial plan; a detailed strategy human management and investment to people with specific situation concerning client’s specific goals for meeting a client's specific goals. The key defining aspect of what the financial planner does is that he considers all issues and questions.

Step to planning for financial empowerment are:

Step 1:  goals setting with the people: This first step is to help people to identify various ways there cold go in the area of finance in their life.

Step 2: Have relevant information about the person: This would include knowing the volumetric and quantitative aspects of the person financial and relevant non-financial situation.

Step 3: Evaluate the information: The information gathered is evaluated so that the person’s situation is properly understood. This includes determining whether there are sufficient resources to reach the person goals and what those resources are.

Step 4: Taking a strategic and a financial plan: Based on the understanding of what the person’s wants in the future and his current financial status, objective is set to the person goals is drawn to facilitate the achievements of those goals.

Step 5: Implementing the strategies in the plan: Guided by the financial plan, the strategies outlined in the plan are implemented using the resources allocated for the purpose.

Step 6: Deciding on a definite goal: for planning to be effective, there is a need to have a definite goal in mine. In other words you must set goal for yourself. Lack of goal is the major problem encountered by any individual. If you intend to have a level in financial empowerment in the next ten years, the picture must be in your mind. Deliberate plan must be instituted.

Step 7: Develop on a definite time frame: your plan must entail given yourself a deadline. In other words, if you intend to retire say at 60, the financial empowerment at that period must be stated, you don’t plan for financial break through if you don’t possess the energy require to bring it forth. It is important to be definite in term of time frame, it is appropriate to start creating wealth  when one is off age. At this time the dividend received from past investment should be sufficient to accommodate all your expenses.

Step 8: Develop a plan to achieve your goals: As explain above, on planning adequately to match an adequate goal, it entails to be a successful investor. Decide on what level of income you require to create certain level of investment and review your plan continuously.

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