There are plenty of of us which live under the impression that’ only rich individuals want the services of planners.’ The reasoning is usually something to the outcome that only such affluent individuals have money that is’ substantially enough’ to warrant the enlistment of the expertise of a professional to assist in planning its expenditure! But this way of thinking is largely informed by a false impression of what a financial planner really is, and what their purpose is all about.
A financial planner’s work is not all about helping people’ plan just how they are going to spend their money.’ In fact, strictly speaking, that is not actually one of many things a planner does. A financial planner is, instead, a professional who will help people come up with very good financial goals, and plans for the attainment of those goals. Planning exactly how they’ll be spending the money of theirs may, of course, turn out to be a way in which a planner can help them towards the attainment of the goals of theirs, but that is in no way the main thing completed by the financial planner. The task of the planner is about the identification of financial goals, and the definition of plans for the attainment of those goals.
Once you begin viewing a financial planning as a professional who could allow you to formulate your financial goals and define plans for the attainment of those goals, it will promptly become evident to you that it is in fact folks of modest means who need the expertise of the financial planners more. The assumption here is that the rich folks have attained almost all of their financial goals (hence their affluent status) – and whilst they continue to need the services of planners, in order to protect and keep their wealth, it’s their humbler counterparts who need those services even more.
The very first way whereby the modest income earner can benefit from the services associated with a financial planner would therefore be in the formulation of the right financial goals. While there is nothing that you do not like about being a low income earner at the moment, it will be regrettable if you realize you are in the same situation ten years down the line. Still that’s precisely where you are likely to end up, in case you do not set financial goals and work towards the attainment of theirs.
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The second way in which modest income earner can benefit from the assistance of a planner would be by exploring – with the financial planner – ways of increasing that income. Of course, increasing the income is only one of many financial goals that might be set, but it’s worth of a mention alone – because income increment tends to end up being the best irritating issue for low income earners.
The third way whereby the modest income earner can benefit from the services of a financial planner will be in the formulation of several plans for the attainment of the financial goals. A goal is as a destination: having made up the brain of yours that you’re headed there, you need to work out just how you are going to get there. That is what a financial plan does. It comes after the formulation of financial goals, and is largely made up of (practical) strategies for the attainment of those goals.