WHAT DOES THE FINANCIAL PLANNING PROCESS INVOLVE?

The financial planning process generally involves a number of key steps. By following these steps, you get an understanding of where you are today, where you want to be in the future and what is required to get there. The steps include:

1. Collecting your financial data - such as details of your income (pay slips, invoices and so on will help), debt level (mortgages, credit cards, personal loans, HECSHELP and so on) - to determine your current financial position.

2. Developing a budget that demonstrates your spending habits. We have attached an online budget that can help you.

3. Identifying and then prioritising your lifestyle goals and financial goals.

4. Outlining any financial issues. A financial planner will tell you if there are any gaps between where you are now financially and where you want to be.

5. Preparing your financial plan with the appropriate strategies to help you achieve your goals.

6. Implementing your financial plan once you understand and are comfortable with the recommendations.

7. Reviewing and revising your plan at least annually, to ensure it stays on track even when personal circumstances or the economic environment (interest rates, job prospects and so on) changes.

How can financial planning help create wealth?
How do financial planners charge for their services?
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Introduction to Managed Accounts
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About half of all accounting firms are considering a move into financial planning. Read more
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