The 6th October is World Financial Planning Day, a day when the global financial planning profession comes together to increase awareness of the importance of financial planning, having a financial plan in place and working with a qualified, independent financial adviser to help you reach your financial ambitions.
The Financial Planning Standards Board (FPSB) and its global network of organisations are uniting this Wednesday for the fifth annual World Financial Planning Day, within the International Organisation of Securities Commissions (IOSCO) World Investor Week, to promote investor education and protection all through this week.
“Consumers with a financial plan are nearly three times more likely to feel confident about achieving their life goals,” according to CEO of FPSB, Noel Maye. “FPSB’s World Financial Planning Day is an opportunity for the global CFP professional community to empower members of the public to increase their financial literacy and capability, and take control of their financial futures.”
What can I do on World Financial Planning Day?
Perhaps use this time to ensure you have your personal finances under control and you’re on track to achieving your objectives. Check out the following steps to help you on your way to wealth creation.
Decide on your financial goals
Make a list of your financial objectives. Set out the list of reasons why you want to save and invest and don’t forget to set yourself a timeline to achieving them. If financial freedom is your principal goal, note how long it will take you to get there and how much money you’ll need. Visualising your goals will help to speed up your progress.
Settle your debts
Use World Financial Planning Day to start looking at ways to reduce your debt. Eliminating costly credit card debt as quickly as possible is a good start. Try to avoid making the minimum repayment each month, as you’ll pay more in interest over a longer period. In addition, determine whether your spending is essential or a luxury. Making a budget will help you to avoid unnecessary spending.
Consolidate your bank accounts
Juggling multiple bank accounts can often make it more difficult to keep track of your money, you could lose sight of your savings, incur overdraft fees, miss payment deadlines resulting in hefty charges…the list goes on. The more accounts you have the more mistakes you are likely to make, ending up costing you more. Less bank accounts are more straightforward to monitor and can often result in lower fees, higher interest rates and other such incentives, making it generally easier to manage your finances.
Take out insurance
Make sure you have insurance to protect yourself and your loved ones in the event of unforeseen circumstances. Setbacks may occur during your working life that result in a loss of income and increasing expenses. This will, of course, hinder you from staying on track to reaching your financial objectives. As such, having insurance can help you to safeguard your emergency fund in the case of an accident, illness or disability, ensuring your finances are not unduly impacted.
Where there’s a will…
The importance of having a will can often be overlooked within personal finance and financial planning. Although writing a will won’t help you hit any financial goals directly, it’s a crucial part of personal finance. If you already have a will, use World Financial Planning Day to review it and make any amendments if required. If you haven’t yet made a will, use this time to write one, don’t put it off any longer!