Before you climb Mt Everest, you have to reach Base Camp. Before you reach Base Camp, you have to reach Lukla. Before you reach Lukla, you have to reach Kathmandu. Any major goal requires several crucial steps to complete the journey, and it’s no different to your finances. So before you plan your summit assault, here are a few tips to get you started on the path to success.
Talk to the experts
Seeking financial advice can be a daunting experience. If you’re already struggling to make ends meet, paying a financial planner may seem like another cost you don’t need. It’s worthwhile meeting with a few before choosing an experienced planner you can connect with on a personal level.
Plan your route
Base your financial plan on a wish list. Write down everything you want. When do you want to retire? Do you want to change careers or spend more time with the family? Even if you can’t afford it all, put it all down. A financial plan focuses the mind on what is most important and what your future financial aspirations are. It will help you work out what you can afford and what is out of the question.
Avoid the crevasses
Insurance can be just as important to your financial planning as other strategies. It can help to provide financial security and peace of mind, and enable you to protect your ability to earn an income in the event of accident, sickness, disability or even death. Regularly assess the importance and level of insurance as your life circumstances change.
Taking the steep path
It’s essential to think about how well you cope with risk and talk about it with your financial adviser. Having a range of investments across asset classes will help to spread the risk so that when one area is not doing well, another may compensate. Taking a long-term view of the eventual summit will also help you deal with the peaks and valleys along the way.
Keep the camp clean
Do you have a pile of statements and paperwork gathering dust and awaiting attention? Managing your financial plan is as important as starting one. The various types of paperwork help you keep track of what money you have. Try setting aside a set time each week to keep the financial house in order, or use the family desktop with an online or electronic record of your financial activity. There are many online tools available to help sort out your financial paperwork. Opt for electronic statements, which are more efficient for filing and environment friendly.
Consider these tips and you’ll be on the way to planting your financial icepick on the summit of your financial dreams.
“This document or website contains general advice only. You need to consider with your financial planner, your investment objectives, financial situation and your particular needs prior to making an investment decision. Charter Financial Planning Limited and its authorised representatives do not accept any liability for any errors or omissions of information supplied in this document except for liability under statute which cannot be excluded.”