A financial plan should never be a ‘set and forget’ exercise, but rather a dynamic and flexible tool that adapts to your changing circumstances and goals. The start of a new year is a great opportunity to refresh your goals, so here are some tips to get you inspired.
Revisit your bucket list
Start by re-examining what it is that motivates you and what dreams and wishes you have for the future? This could include travel goals, leisure pursuits, family activities, lifestyle assets or retirement income. These things are what drives your financial plan, so it is important to re-appraise them regularly.
Make each goal concrete
The next step is to make sure you are clear on the dollar amounts, timeframes and priority of each objective. Setting these parameters ensures that the things you desire are tangible goals and not just idle wishes.
Your adviser can really add value to this process, so it may help to get them involved to help you articulate each goal and offer objective counsel on structuring the financial aspects to reach them.
Reviewing the context of your plan
It is important that the financial context of your plan is also reviewed to make sure you are maximising opportunities and taking into account external issues. This could include factors such as:
- how you are managing debts;
- your monthly budgeting;
- how well you are savings;
- maximising tax saving opportunities, such as salary sacrificing;
- legislative changes; and
- reviewing your insurance risk exposure.
Meshing the plan together
Your financial plan is unique to you, so you want to ensure it grows and develops along with your evolving perspectives and aspirations and remains a true reflection of your personality.
Your financial planner is ready to work alongside you in this process. Think of them as a financial coach that helps you ‘read the game’, point out opportunities and ensure that you play to your strengths.
Their experience and know-how can make a critical difference to the effectiveness of your plan and that can translate into a major difference in final outcomes.