Doing it yourself is all the rage these days, but can (and should) you DIY your financial plan? Here we explore the pros and cons of doing it yourself.
Utilising free or low cost advice
There are many options available when it comes to seeking out free advice around financial planning. A simple internet search will yield many results which may come in the form of YouTube videos, blogs and podcasts. Similarly, publications such as Money Magazine can be helpful and there is a plethora of self-help books from financial ‘gurus’ on the market.
The downfall of all this advice is that it is often very general and most likely will not apply to your specific circumstances. These sources of advice often focus on one aspect of financial planning such as property investment or superannuation, so there is a danger by following these resources you will be led down a path that is not suitable for your financial circumstances or goals.
Goal Setting
Whether you are considering a DIY financial plan or employing the services of a professional financial planner, having a goal is critical. Setting saving goals will help you remain focused and achieve your dream sooner. Doing it yourself requires commitment in both setting goals and making sure you stick to them.
Understanding Money Management
Not everyone is equipped with the resources required to successfully manage their own money. It takes time and discipline to implement and manage a financial plan. You will need to be prepared to do extensive research into areas you may not be familiar with, such as superannuation, insurance and investment options such as property and stock. Alternatively, a certified financial planner is a qualified expert in all areas of money management and will be able to provide advice specific to your requirements.
Holistic approach
A financial plan is much more than making a budget and sticking to it: it is about planning for your future and the future of your family. A holistic approach to financial planning incorporates retirement planning, estate planning, risk management, superannuation and wealth-building. If you are a DIY financial planner it is important to consider the big picture when planning your financial strategy. And because your circumstances and goals will change over time, it is important to ensure that your plan is always evolving and changing to meet your needs.
Peace of Mind
Ultimately, a financial plan is about having peace of mind, knowing that you and your family will be financially secure no matter what the future holds. Not everyone is comfortable and confident to manage their own financial plan, and considering the stakes, consulting a professional financial planner is a good investment.
A financial planner will ensure your money is working harder for you at all stages of your financial lifecycle, including more income in retirement, lower tax and interest bills and enhanced net wealth.