Saturday, January 19, 2008
Financial Independence Through Simple Financial Planning
Through proper financial planning, financial independence can be achieved. We discuss simple financial principles on how this can be achieved. As long as you work the principles, there is no reason not to succeed. Is financial planning really important? For the average person, it is often thought of as a nightmare. In reality, it may not be so harsh. The process can surprisingly be quite a low-stress one. In one sentence, financial planning is really just a six-step process you need to go through to achieve your financial goals. Here is a brief outline of the process: 1. Establishing and defining the relationship with the client 2. Gathering client data for evaluation 3. Analyzing and evaluating the clientâ™s financial status 4. Developing and presenting financial planning recommendation(s) 5. Implementing the financial planning recommendations 6. Monitoring of the plan It is important to note that the CFP (Certified Financial Planner) Board has developed and officially announced practice standards for practitioners to abide when performing this six-step process. Therefore, any competent certified financial planner should have to abide by these practice standards. These standards are much too detailed to be discussed here. However, anyone who is interested in knowing more can just type the key-phrase â" âœcertified financial plannerâ â" into any search engine e.g. Google, Yahoo for more information. At the heart of this process - prioritize meaningful personal and reasonable financial goals. Therefore it is a multi-faceted activity that requires trade-offs between one s goals and objectives. This process helps to make one s financial situation as clear as possible. At the core of all this, it is financial planning that will make your financial goals come true. It is definitely an important aspect of anyone s financial future, and is both a process and an attitude. Essentially, it is mostly about habits. Financial planning is about developing a personal road map to achieve one s financial independence. It is about getting the most out of one s money to provide for one s family and to achieve one s financial goals. With proper planning, your road to financial independence can be a reality. It can certainly be a dream come true. Checking out for tips and resources on simple financial planning ? Do check out our site on personal financial planning and get a free ebook when you subscribe to our free monthly newsletter.