Financial advice usually relates to a particular financial problem or area on which you are looking for help or guidance on and in the majority of cases, the advice relates to an individual financial product or investment.
Financial planning however is more holistic and is the process of properly managing your finances in a way that allows you to achieve your life goals. The process assesses your financial situation as a whole and provides you with direction and control over all of your financial decisions.
Financial planning enables you to see the ‘big picture’ and find answers to important questions such as:
- How much do I need to earn/save in order to maintain my current lifestyle in retirement?
- When will I be in a position to work because I want to, not because I have to?
- Am I able to pass on money to my family, or create a legacy and still be sure I’ll never run out?
Quite simply, how much is enough?
As we all know, things in life do not always go as expected. Your financial plan can be tweaked to incorporate these changes and see how they impact your goals both short and long-term and what action needs to be taken in order to get you back on track.
Read more about Financial Planning here.