Financial planning is the process of understanding your current financial situation, defining your future goals, and creating a clear strategy to achieve them. It covers areas such as budgeting, debt management, investment planning, tax efficiency, retirement savings, and insurance. A strong financial plan ensures you are well-prepared for emergencies, can meet your long-term objectives, and enjoy peace of mind knowing that your finances are under control. By evaluating your income, expenses, assets, and liabilities, financial planning helps you make informed decisions that secure your financial future and improve your quality of life.
It ensures that you can meet your financial goals while being prepared for unexpected expenses.
At least annually, and also after major life events.
Assessing your current income, expenses, assets, and liabilities to understand your starting point.
While not mandatory, a professional can help create more effective strategies and avoid costly mistakes.
A general rule is at least 20% of your income, but this depends on your goals and expenses.
It’s the practice of spreading investments across different assets to reduce risk.
Start early, invest regularly, and ensure you have adequate pension or retirement fund contributions.