Page 15 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes When life events affect your financial needs, this financial planning process will provide a
vehicle for adapting to those changes. Regularly reviewing this decision-making process will
help you make priority adjustments that will bring your financial goals and activities in line
with your current life situation.

Notes There are Five A’s of Personal Financial Planning. These are:

Awareness
Analysis
Alignment

Action
Accountability

1.4.3 Tips for making the most of the Financial Planning Process

1. Start now. Even if you are in your mid thirties or forties, it’s better to start now than
dawdle for another five years. Every day counts.

2. Be honest with yourself. Seek help when needed.
3. Set sensible, measurable goals for yourself. Be realistic in your expectations of the results
of financial planning.

4. Review your plan and financial situation periodically and adjust as needed.
5. Always review the performance of your investments; pull out if needed and reinvest the
money elsewhere.
6. Be hands-on. It’s your money and no one else will do your work for you.

1.4.4 Features of a Good Financial Plan

How do you evaluate the quality and effectiveness of your financial plan? Well, here’s a checklist
you can use.

Does it indicate your current financial situation?
Does it list out all your goals in measurable terms?
Does it lay out an investment strategy?
If professional help is sought, your financial planner will ensure that your financial plan also
contains the following:
List of possible risks and a risk management plan.
Expected returns from each investment.

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