Financial Planning 101 Introduction | Financial Management | Personal Finance Money Management

How do you make your life better? get more control? protect your family? Create a personal financial plan. Start here! We all want to know how we are going, and what we can do do improve our money management and personal finance.

The main reason for planning is to get things done faster and to avoid problems. Examples of plans include things as simple as a shopping list to more complex plans like a building construction plan. Think of a Financial Plan as a faster way to your "financially better " place.

This is an overview of 7 keystones of a personal financial plan.
1.Your spending /personal budget
2. Building a cash safety net / emergency funding / afe money management
3. Importance of Buying a home
4. Protecting your family and assets/ insurance plans
5. Putting plans in place to safeguard your family in case of (premature) death
6. Saving for retirement
7. Understanding how investment and risk go together.

So you can see how they all fit together.

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Closed Caption:

welcome to an introduction to financial
planning my name is turning her solo
I'm qualified financial advisor and or
with a great bunch of accountants tax
agents legal and property specialist
this on start lookin fella here is a
pretty simple success message make money
and don't spend up
very true but probably not that helpful
but today's presentation will be helpful
to you
designed to be educational non-technical
and should only run to about 10 minutes
we want to give you a picture of what
financial planning is really about
and by the end of the session should
have a pretty good idea of what the
elements are
and more importantly how they fit and
work together so let's begin
now to help me explain the process I
want you to close your eyes and draw a
picture of a train in your mind
use your powers of its revision and look
through the walls and create a complete
picture of a tree
once you've got that complete picture of
the tree from top to toe hold it and
then open your eyes
ok he's mine
is the top of my tree
and he is the top
great
be like that tree sometimes we see the
top bits but there are other paths just
as important
below ground
ok let's have a quick look at the top of
the tree each investment option is
different
it provides different results at
different times according to the nature
of the investment and your epitaph risk
it's full of the stuff the media loves
to report on booming property in chair
markets falling interest rates all the
hearts and all of the Liao's
shouldn't be any surprise that
investments whatever they are have good
and bad times we don't really care just
because the season changes
investment results are important very
important when people think about the
financial plans that can be misled into
believing that this is the complete
picture
but we know better don't we there are
other bits to consider
let's have a quick look at the base of
the tree
it makes sense that you treat has to be
grounded and rule from the roots
six major primary routes
each place an individual role but each
also interacts with the other elements
so let's have a look at each one now and
then return to the investment side
the first element that we need to look
at is budgeting budgeting for a surplice
without creating the surface you can
improve your position
you really must spend less than you earn
what you have
the person place you can make decisions
as to where it goes
surpluses give you choices
do you budget often talk to your
advisors
maximize government incentives and
benefits secret boss and ways to reduce
tax
review the big expenses including
interests and finance costs
sure that your money works harder
automate your savings by paying yourself
first
create a super snow matter how
small and often and don't regularly
with a budget in place you might also
want
consider and no touching emergency fund
apart from the obvious reason it pays
bills in a real emergency
it also does provide peace of mind
having a fun we you need
and on your circumstances do you have
regular income or is a very fun way to
wake
looking spending pattern is it high and
regular sometimes known as kids
what can you live on the basics just
bread milk and water
finally he created head he creates such
a fund and where we hold it and if you
can create a fund easily
perhaps you want to consider some advice
in every arena
with a consistent surface and savings
place your home is the next major
element
lost it doesn't usually provide income
it does provide something that is
variable capital growth over time the
property value grows and your equity
also grows its access to this equity
that opens up investment opportunities
now your house is usually the largest
investment and the creator of the
biggest did
it's the worst top of dead it's not tax
deductible and that makes it expensive
because it's expensive
it impacts on your surplice
so what can you do about it how can you
reduce the cost of that dead
having to pay a damn faster how can you
make it much more texts effective the
options will revolve around your own
circumstances but there are strategies
available to you including did recycling
debt consolidation and the use of texts
effective investments
you're on a roll laughs really happening
good things are happening
your life is some structure and its
bearing some financial fraud -
us it's in place obviously you've got an
income that allows you to create a
budget supers
you also have an emergency fund may be
in the shape of some investments and
importantly you've got home
now that you've got all these asses you
need to start to consider protection
good things happening laughs and
unfortunately but realistically bad
things happen to
and I'm not just talking about a cough
or cold I'm talking about premature
death cancer stroke heart attack
major excellence the nasties
I'm sure you can think of someone has
been thump all off so it's time to act
by looking at what strategies you have
in place
what's your plan if
so if something happens what will you do
when you crash with the mother-in-law
will you sell your home
we rely on signaling payments how about
basking in the mall or we send the kids
out to work
for most people the answer lies in
insurance but the question is
what can you afford to lose
what is it that you will ensure
will you ensure your income we just
cover the bank lines
a particular investments
of your insurance protection strategies
are certainly part of a strong financial
plan
the only thing that is certain life is
death and taxes
and estate planning is there making sure
I can
before we become angels we act to ensure
that our choices and assets go to the
right people in the right way at the
right time
estate planning make sure that it's your
will and it's not the government's way
so you know you can't take it with you
and that means you're going to have to
take some steps to protect your family
things like getting a will making sure
that you've got powers of attorney in
place
perhaps looking at superannuation
nominations and understanding the text
implications of the decisions all part
and parcel of good estate planning
provided we haven't died prematurely one
of our goals of course must be the plan
for your retirement retirement means
that we've stopped working and their
income has stopped by their expenses
keep going
people are living longer and we could be
retired for up to 30 years
Sarah investments including
superannuation become very very
important
retirement planning becomes more
important as we get closer and
retirement age
however we still need to address the
questions how much what we need
how much will put aside now and will
their investments do the job for us
now let's focus on happened
great
there are obviously different option
with different pay off some returns and
different risks attached
by hanging fruit is easy to reach but
not as big and maybe not as tasty as
food higher up the investment tree
food at the top of the trees had a reach
so we'll need to be a little bit more
careful
even though it is potentially more
attractive
the free desire has to be relevant with
your goal and your appetite for risk
the higher the risk the better prepared
you must be you may need to be more
patient
he certainly should look to protect
those investments and also protect the
cash flow that feeds them
it's vital that you understand exactly
what you're investing in and how that
investment works they can be complex
so ask questions
what are you actually investing for are
you investing for the income that it
provides all you want capital growth is
your investment basket to this fun or
are you just happy to put all your
apples in one basket
one of the texts benefits and tax
implications associated with the
investment
do you want to control the investments
or you have to have somebody else manage
them
and if they are going to manage them
what sort of manager are they are they
aggressive managers or value web
managers or passive managers there
obviously lots and lots of questions to
ask so seek advice
investment planning is a living and it
dynamic tree things do go out of shape
things grow too quick and need to be
pruned and some things just don't work
unless you give them some attention
so you do need a review and review
regularly and more importantly be
prepared to act when things go
pear-shaped things that can trigger a
review of changing careers and
redundancy
divorce and marriage breakups growing
families death or sickness changes to
the investment climate changes to tax
rates and rulings interest rate changes
all these things and more can
potentially affect your investment tree
so it's important that you do review and
review regulate
as a nation profit that
ask the question when is the best time
to plant a tree
twenty years ago
of course that brings us
the other question when the second-best
on the planetary
as soon as you can well that's it that
brings us to the end of the session
thank you for making the time to watch
and we certainly hope that you enjoyed
it