Achieving the best results

You must remember that you are the focus of the financial planning process. To achieve the best results from your financial planning engagement, you will need to consider the following advice:

  • Set measurable financial goals
    Set specific targets for what you want to achieve, and when you want to achieve results. For example, instead of saying you want to be "comfortable" when you retire, or that you want your children to attend "good" schools, you need to quantify what "comfortable" and "good" mean so that you'll know when you've reached your goals.

  • Understand the effect of each financial decision
    Each financial decision you make can affect several other areas of your life. For example, an investment decision may have tax consequences that are harmful to your estate plans. Or, a decision about your child's education may affect when and how you meet your retirement goals. Remember that all of your financial decisions are interrelated.

  • Re-evaluate your financial situation periodically
    Financial planning is a dynamic process. Your financial goals may change due to changes in your lifestyle or circumstances, such as an inheritance, marriage, birth, house purchase or change of job status. Revisit and revise your financial plan as time goes by to reflect these changes so that you stay on track with your goals.

  • Start planning as soon as you can
    Don't delay your financial planning. People who save, or invest small amounts of money early often tend to do better than those who wait until later in life. Similarly, by developing good financial planning habits such as saving, budgeting, investing and regularly reviewing your finances early in life, you will be better prepared to make life changes and handle emergencies.

  • Be realistic in your expectations
    Financial planning is a common-sense approach to managing your finances to reach life goals. It cannot change your situation overnight; it is a lifelong process. Remember that events beyond your control, such as inflation or changes in the stock market or interest rates, will affect your financial planning results.

  • Realise that you are in charge
    If you're working with a financial planner, be sure you understand the financial planning process and what the planner should be doing. Provide the planner with all the relevant information on your financial situation. Ask questions about the recommendations offered to you and play an active role in decision-making.
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