In order for everybody to spend money wisely along the way to achieve financial freedom, they need to plan their financial wisely. It’s also essential for a person to know their objective and goal before proceed to financial planning. But some of the people refuse to know or learn about financial planning because most of the people are not knowledgeable to manage their cash, even their not aware the important of financial planning. Then how to do? The slower way is step by step learning or the faster way is get advice from financial planner, and the latter is more effective way for planning your cash wisely. Anyhow, the individual should check the background and the experience of the financial planner before getting their advice for your own benefit.
Personal Financial Planning is very important to help a person to protect themselves from the effect of inflation. It ensures an individual have enough cash when it is required. Financial planning can give a person “a peace of mind” with their financial situation and even improve or maintain their good and enjoyable lifestyle in the future. Financial Planning can go into various ways such as Risk Management, Wealth Accumulation, and Wealth Distribution Plan.
Risk Management mainly is talking about the financial risk, physical risk and personal loss. It is to protect minimise an individual potential risk. It includes insurance planning which is General Insurance, Life Insurance and Medical Insurance.
Wealth Accumulation basically is talked about your budgeting and investment planning to suit your current and future financial need, it is to ensure you can sustain the inflation and maintain your lifestyle in the future. It includes your retirement plan, children education plan and etc.
Financial Distribution Plan basically is your Will or Trust for you to manage your estate to make sure it is distribution to the individual as your plan.
With the guideline from Financial Planner, the individual can more understand the use of money. They can plan wisely and more strategic on their taxation planning.