Creating a Personalised Financial Plan: 7 Best Practices

Financial planning is one of the most proactive approaches you can take to take control of your money and manage it effectively and efficiently, yet it can be a task put off by so many for years on end. 

Did you know?

• 80% of people find that financial planning allows them to fulfil their life dreams
• 61% say financial planning positively impacts their family life 
• 54% of people say financial planning has improved their mental health

Creating a financial plan will help you to live a more financially secure life, giving you much greater freedom and happiness. 

Of course, the younger you begin financial planning, the better for your long-term success. But no matter what age you are, it’s always good to get started on achieving your financial goals.

As Certified Financial Advisors with over 40 years of experience, we have collated the 7 best practices for kickstarting your personalised financial plan.

7 Best Practices for Financial Planning

1. Identify Targets, Goals and Achievements

As with many planning activities, it all starts with the same first step, setting goals, objectives and targets you would like to achieve. 

It seems like a monotonous task, but in reality, it seeks to set you up for as much success as possible and helps to create a clear path forward.

Setting goals will lay the foundations for your financial plan and aid in mapping out your journey to financial success, security and if you wish, freedom. 

Try to keep this straightforward by noting or listing what it is you would like to achieve. 

A great starting point is to use the SMART model for goal setting here as a guide.

Following the SMART model means that for every goal you have you want to make them:

• Specific
• Measurable
• Achievable
• Relevant
• Time-bound

So start here, and apply this model to each of your goals. It should make the process much easier and quicker for you to do.

2. Evaluate and Review Your Current Finances

It is important to consider your current financial situation to understand where you are now and where you want to be. 

(Top tip: doing this will provide good direction for your goal setting too)

When reviewing your current finances, consider using some of the following headings:

• Income 
• Expenses 
• Assets 
• Liabilities
• Debt 
• Spending habits
• Investments

This process will paint a clear picture of your money, and where it’s being allocated to and help you to identify where improvements are needed. 

3. Plan for Unforeseen Circumstances

When creating a financial plan, it is important to think about the future, yes, but you need to remember that the path to the future is not a straight line. 

The economy is constantly changing and fluctuating, and with that, your money can too. 

Because of these uncontrollable market factors, we would suggest setting aside a budget for unforeseen circumstances or emergencies. 

Whether caused by the economy or a life event, it’s always good to have a safety net.

Be sure to give this some consideration when you develop a financial plan.

4. Plan for Retirement

Planning for retirement is something not to be missed when you are building a personalised financial plan. 

Even though it can seem like a long way off, especially in your 20s, it is the best way to ensure you have yourself set up for life post-work. 

Financial planning for retirement will help you to:

• Stay financially independent 
• Maintain your standard and quality of living
• Help you transition into retirement 
• Reduce financial stress and burden 

You work hard to make a stable living for the majority of your life, you need to be able to enjoy your retirement years, feel at ease and gain some peace of mind in your financial standing.

5. Manage Your Taxes

Managing your taxes and having a good understanding of them is vital to a proactive financial plan.

Without it, you are simply going to react to your taxes as and when they approach, rather than having a plan of action to reduce your personal or corporate liabilities.

When managing your taxes, don’t forget to consider inheritance tax planning, an often overlooked but key piece of financial planning that could protect your family from a substantial tax bill in the future. 

We suggest taking some time to review your taxes thoroughly and try to decipher an appropriate plan of action towards becoming more tax-efficient.

6. Consider Investing

Investing is a topic that is constantly in circulation, but many people struggle with the concept, often because it is made to seem overly complicated, but in reality, it can be kept quite simple. 

If working towards greater financial freedom is one of your major goals, considering investing could be a great option to consider, one that you should outline in your personalised financial plan. 

If your financial planning indicates surplus funds in your bank account, it might be time to consider how you can maximise return on these funds through investment opportunities.

7. Hire a Financial Advisor

Financial planning can be a time-consuming process, but one worthwhile doing. 

If financial planning is something you are keenly interested in but you don’t have the time to manage it yourself, consider hiring a financial planner. 

Financial advisors and planners have the expertise and knowledge to guide you in your journey. 

At Moore Wealth Management, we have over 40 years of experience and are one of only 300 Certified Financial Planners™ in Ireland, offering you financial services in:

• Tax Advice and Planning
• Pension and Retirement Planning 
• Investment Advice and Planning
• Risk Management 

Take control of your financial well-being with the help of a financial planning firm like Moore Wealth Management. 

Contact us today, free of any obligation or commitment by clicking here

Follow us on LinkedIn for industry insights, updates and our latest news.