Plan, and Take Control of your Future

For some people, life ‘just happens’, and they lurch from day to day without any idea what they want from their lives. Life will always deliver good and bad surprises and it’s important to be adaptable; but a degree of planning, whether for a career, a holiday or a family, helps us get the most from life.

This is particularly true for our finances – the ‘tools’ that fund our lives. To get the most from our hard-earned money, we need to plan. Today, the complexity of the financial system means that it’s wise to consult the experts.

Financial planning, at its most simple, is the process of setting and implementing a strategy to meet future financial goals. At its most long-term, this means planning for retirement. But it also encompasses planning for everything else a person financial planning online wants to achieve on the way to that end goal, whether it be bringing up and educating a family, buying a home, taking a career break to study, or simply having enough money for life’s luxuries.

Wandering in the DarkWithout a long-term goal, you’ll be tempted to waste money on immediate gratification, leaving you with nothing for an emergency or for your future needs. Without a financial plan your savings are likely to be random and ineffective.

A financial plan begins by defining your long-term goals, which for many people are too vague to be useful. For example, how many people know exactly what income they are likely to need in retirement – and where it will come from? Then you need to have a strategy for success. The more comprehensive the financial plan, the better it will support your entire life as time goes on.

Voodoo?Financial planning has often been considered a mysterious art. The reality is that it does require time and effort to understand, but it is possible for a committed person to do it himself or herself. A financial planner’s fees are quite considerable, and you may feel that your portfolio isn’t yet of a size to warrant an expense of upwards of $2,000.

Help to Do It YourselfYou do have an alternative, one which takes effort on your part, but which can be very rewarding. Online financial planning tools are now readily available, and are much more cost-effective than a personal service.

A good online financial planning service is usually available on a subscription basis and provides a strong framework for a DIY investor. It will give you access to financial planning software, investment portfolio information, financial calculators and even a resource centre.

If you decide you can commit the effort and time to managing your own finances, you should ensure you choose an online service that provides access to resources and educational materials to help develop your skills and experience.

Statistics tell us that up to 80% of Australians will experience poverty at some stage during their retirement. Ensuring you won’t be one of them will take careful and considered work. Taking charge of your planning using the tools available today is a good step towards financial security. To learn more about taking charge of your investment strategy by using online financial planning, click here.

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