Many people view personal financial planning as simply a means to an end: the end being a comfortable retirement or a large investment portfolio.
While there is some truth in the above statement, the true benefit of financial planning is not the investment advice or number crunching, but rather the process of goal setting.
Behind every great sports team and behind every great player was a great coach.
Why? Why do the very best athletes in the world use coaches? Mike Tyson, Tiger Woods, Roger Federer, and Tom Brady all use multiple coaches, despite the fact that they are the best at what they do.
Answer: because they are better with them.
Financial Planners work with their clients to set clear, measurable financial goals and create plans to achieve them. This is the key to successful financial outcomes.
A professional financial advisor can play a crucial role in this process by helping you set realistic goals, track your progress, and hold you accountable to your plan. “I have seen the enemy, and it is I.” said Pogo.
We all need help identifying what is important to us and staying focused on it over time.
By defining our financial goals, we are able to focus on the end result and work backward to create a plan that will get us there. For example, if our goal is to save enough money for a down payment on a house, we know how much we need to save and can work out a budget to make it happen.
On the other hand, if we simply focus on saving money without a specific goal in mind, it can be difficult to stay motivated and on track.
Writing down goals also helps to make them real and concrete. It’s one thing to say “I want to save money”, but it’s another thing entirely to write down “I want to save $200,000 for a down payment on a house by the end of the year”.
By putting our goals in writing, we are far more likely to take them seriously and commit to achieving them.
Working with a professional financial advisor ensures that you have an unbiased perspective and helps you navigate the often-complex world of personal finance.
They can also give you valuable advice on how to reach your goals and help you adjust your plan as your life circumstances change.