Financial Planning Advice For The Average Guy

If you are checking out for free financial planning advice to help reach your goals, here are some information you may want to check out.

In the first place, many people never reach their financial objectives for a very simple reason - they simply do not have a plan. In some worse case scenarios, they do not even know what they want.

The first thing you may want to change is your mindset and attitude. Start thinking like a financial planner, even if you are not one. This change in attitude alone can make a big difference to how you handle your financial affairs. You may have already heard - 95% of the population in this country (in fact, perhaps every country on this planet) will be poor and broke by the time they reach their retirement age. Sad fact, but the numbers do not lie.

What seems to be the problem? Obviously, it is the lack of a financial plan and lack of good financial planning advice. And the first bit of good advice is that you should actively manage your own finances. Try not to leave it to a financial planner totally. They are good at what they are doing, that is, to work out your financial plans and give good advice on financial products and services. However, the responsibility lies with yourself to actively manage your own investment portfolio to achieve the highest return possible. Of course, this should be done within the context of your own risk appetite.

Let's start with some advice you can use when starting to work out your own financial plan. Take some time out to work out a list of things that you want in your life. They can include major items such as the kind of house you want, the kind of car you like to drive, your favorite vacation spots etc. Quite clearly, they should of course include the usual monthly expenses that you incur each month.

Now go and list out all the expenses - both major and minor. Once done, you will have a clear idea of how much funds are needed for all these items. Do remember you need funds for savings and investments too. So do give good thought on whether all the expenses listed are really necessary in the first place. If not, it is definitely a much better idea to "spend" them to grow your investments and savings.

Here is another thing to note. Financial planning advisers can be great partners when coming to your personal financial planning. Their advice may not always be free (remember - the "no free lunch" adage still rings true), but the professional ones may be worth spending time and money with. But like I mentioned earlier, you still hold the responsibility to actively manage your own financial portfolio.

Just by getting in touch and working with a financial planner can and do help one to sort out his finances pretty quickly. But it is always advisable (and better) to be financially educated too. If you are financially well educated, you will be able to make good and profitable investment decisions. All rich people and the financially independent know a good deal about investment and money-making

Think about it - virtually all the rich and wealthy are financially well-educated themselves to be able to spot profitable investment opportunities on their own. Most of them are very conscious about financial numbers. If you want to be like them, the fast way to do it is to "model" them. Get involved and be very conscious of where your money is going and coming from. This bit of financial planning advice alone could prove to be very rewarding to your financial health.