When we first sit down with a brand new client our immediate focus is on understanding a lot more about what they’re looking to achieve.

However at that point it’s important for our new client to understand how we add value. We do this by explaining the process of ‘financial planning’.

For most people I speak to who aren’t in the world of ‘financial planning’ there’s a decent amount of confusion about what ‘financial planning’ actually is.

So this article is designed to answer a simple question…

What is financial planning? How can it help me?

The answer is simple.

Financial planning is a process which helps you define your life as a journey and ensure you have ‘the journey of your life’.

Now some of you might think that definition is a bit ‘too flowery’. I understand, let’s talk practically…

Financial planning is a process with clear actions…

First you’ll establish your goals in the short term, medium term and longer term.

Then you’ll work out what progress you’ve made and where you are currently.

Then you’ll work out a plan to achieve your goals.

Then you’ll take action.

Then you’ll review (and continue to review).

The ‘financial planning’ road trip

Imagine you’re planning a European ‘road trip’. You intend to start in good old Blighty but want to visit a bunch of places across Europe.

You’ve got your own car full of petrol and ferry tickets which will mean you’ll land in Calais on the 12th of June.

You know where you want to go to a bunch of different places.

You want to put a lock on a bridge in Paris (if you’re still allowed), drink beer in Munich, Listen to classical music in Vienna, float down the Danube in Budapest and end up sitting by an Italian lake drinking wine.

So, you know where you want to go…you’ve got a plan!

The next step is to work out what you’ve got which will help you get there…

You work out you’ve got your ferry tickets, car and petrol. You’ve got some cash for the trip. It won’t be enough to do everything you want to but will go a decent way towards achieving your ‘road trip’.

The next step is to think about the gap. You know where you want to go, you know what you’ve got which will support you achieving this goal and now you need to work out how to fill the gap.

This means that you need to plan a bunch of different things. Important things like the route you’re going to take, the resources required and the action you need to take to ensure you’re on track.

Now it’d be time to ‘get practical’. To take action. To book tickets, to take action and eventually to set off on your journey.

Then, disaster strikes!

One of the main roads towards Paris is closed and traffic means it’ll take you longer to get there. You’ve got to make a choice on whether to stay on this road or take a detour.

Thankfully you get to Paris eventually (even if it took you a bit longer to achieve your goal) happily and healthily!

You also find your goals changing. You want to include Venice in your trip. Then Zabreb. Then Florence…

Therefore your plan needs to be constantly reviewed to ensure we’re planning for both the good stuff (new goals we want to achieve) and the not so good stuff (the things that happen in our life which mean our goals are less achievable)

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Without becoming too philosophical…

OUR LIVES ARE A JOURNEY.

On this journey it’s more likely you’ll achieve what you want if you take time to understand what you want.

On this journey it’s more likely you’ll achieve what you want if you understand what you’ve got and what you need to achieve your goals.

and

On this journey it’s more likely you’ll achieve what you want if you review your plan regularly.

However the reality is that often we struggle to ask ourselves the right questions. We put off working out what the gap is. We struggle to review our goals regularly.

That’s where financial planning can help.

You see…

A financial planner can ask the right questions.

A financial planner can help you understand the gap between where you are now and where you need to be to achieve your goals.

A financial planner can put a process in place so that you’re able to regularly review.

All this being said meeting with a financial planner isn’t right for everyone.

However, and to celebrate financial planning week (which is happening as I write this), we will be offering a 45 minute review for the whole of June.

The good news?

It won’t cost you a penny. 

You see we’re providing these meetings at our expense. This complimentary meeting will give you an insight into how financial planning might help you and provide you with an opportunity to understand a bit more about how we might be able to help.

Quick disclaimer : You’ll need to come and see us in our City of London based office and there is limited availability.

However regardless of whether you take us up on the office I’d consider financial planning as something you should consider. After all…

If life is a journey…it’s probably worth making it the journey of a lifetime.

To book a financial planning meeting at our expense feel free to get in touch by email (CassieDaems@cervellofp.co.uk) or by calling 01708 606 202 today.