What is personal financial planning, and how can it benefit you?

What is personal financial planning, and how can it benefit you?

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Personal financial planning is your route to financial freedom. However, it’s about more than simply budgeting and saving.

It’s a personalised strategy to achieve your financial goals, however big or small they might be.

Whether you’re dreaming of a comfortable retirement, that perfect holiday, or simply gaining valuable peace of mind, financial planning empowers you to make informed decisions today that will benefit you tomorrow.

In this article, we’ll explain the benefits of personal financial planning and why you should partner with Acumen.

What is personal financial planning?

Personal financial planning is all about creating a roadmap for your money.

It’s a continuous process that involves understanding your current financial situation, setting goals, and creating strategies to achieve your targets.

Here are some key aspects of personal financial planning to give you a better idea of what’s involved:

Understanding your income and expenses: This includes tracking your income from all sources and assessing where your money goes each month.

“Collating these benchmark figures provides the foundation for every other aspect of your personal financial planning journey,” says Daniel Frampton, Chartered Financial Planner at Acumen.

Setting financial goals: These could be short-term goals, like saving for a holiday, or long-term goals, like saving for retirement or a child’s education.

“Once you know where you are, you can then begin to plan for where you want to be,” added Daniel. “Setting realistic, attainable targets is the cornerstone of good financial planning.”

Creating a plan to achieve your goals: This might involve strategies for saving money, paying down debt, investing, and protecting yourself from financial risks with insurance.

“Setting financial goals is only half the story. Planning the necessary steps to help you attain those goals is essential for keeping on track,” suggests Daniel.

Regularly reviewing and refining your plan: Your financial situation and goals will change over time, so it’s vital to revisit your plan regularly and make adjustments.

“People change and life events happen, which makes it imperative to regularly revisit and refine your financial plan to ensure it still meets your needs,” said Daniel.

5 benefits of personal financial planning

There are many benefits to taking charge of your finances through personal financial planning.

Here are five benefits of financial planning to bear in mind if you’re considering seeking financial advice.

1. Achieve financial goals

A well-defined financial plan can help you turn vague wants and wishes into concrete objectives.

It creates a roadmap to get you to your dream holiday, that new car, or a comfortable retirement.

2. Gain peace of mind

Knowing that you have a plan in place for unexpected events or future needs can also help to reduce any stress when such events take place.

As such, it can enable you to face challenges with more confidence.

3. Improve decision-making

By understanding your complete financial picture, you can make informed choices about spending, saving, and investing.

Armed with such insights, you stand a far better chance of making financially astute decisions.

4. Reduce financial stress

Financial planning empowers you and gives you a sense of control over your money. This can significantly reduce anxiety and worry about your finances.

This can be a liberating, and potentially life-changing, experience.

5. Achieve better outcomes

Studies have shown that people with a financial plan are more likely to save enough for retirement and achieve their financial goals.

Think of financial planning as an investment in yourself and your long-term future.

Acumen’s personal financial planning services

Personal financial planning isn’t just about saving for retirement or making money.

It’s about taking control of your finances and making smart decisions with your finances so that you can achieve your goals and live comfortably.

It can improve your financial well-being and give you the freedom to prioritise what matters most to you.

Here at Acumen, we provide personal financial planning services and transparent advice.

We pride ourselves on building strong working relationships with our clients and our highly qualified, experienced multi-disciplinary team works together to provide a thorough and tailored approach to your personal financial planning.

For more information about our personal financial planning services or to arrange a consultation, please contact us today on 0151 520 4353 or email info@acumenfinancial.co.uk.

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