How Modest Income Earners Can Benefit From The Services Of A Financial Planner
There are many of us who live under the impression that 'only rich people need the services of planners.
' The reasoning is usually something to the effect that only such affluent people have money that is 'substantially enough' to warrant the enlistment of the services of a professional to help in planning its expenditure! But this way of thinking is largely informed by a misunderstanding of what a financial planner really is, and what their role is all about.
A financial planner's work is not all about helping people 'plan how they will spend their money.
' In fact, strictly speaking, that is not even one of the things a planner does.
A financial planner is, rather, a professional who helps people come up with good financial goals, and plans for the attainment of those goals.
Planning how they will be spending their money may, of course, turn out to be a way in which a planner can help them towards the attainment of their goals, but that is by no means the main thing done by the financial planner.
The work of the planner is about the identification of financial goals, and the definition of plans for the attainment of those goals.
Once you start viewing a financial planning as a professional who can help you formulate your financial goals and define plans for the attainment of those goals, it will instantly become clear to you that it is in fact people of modest means who need the services of the financial planners more.
The assumption here is that the affluent people have attained most of their financial goals (hence their affluent status) - and whilst they still need the services of planners, in order to protect and keep their wealth, it is their humbler counterparts who need those services even more.
The first way in which the modest income earner can benefit from the services of a financial planner would thus be in the formulation of some good financial goals.
While there is nothing wrong with being a low income earner at the moment, it would be unfortunate if you find yourself in the same situation ten years down the line.
Yet that is precisely where you are likely to end up, if you don't set financial goals and work towards their attainment.
The second way in which modest income earner can benefit from the services of a planner would be by exploring - with the financial planner - ways of increasing that income.
Of course, increasing the income is just one of the financial goals that can be set, but it is worth of a mention on its own - because income increment tends to be the most bothersome issue for low income earners.
The third way in which the modest income earner can benefit from the services of a financial planner would be in the formulation of some plans for the attainment of the financial goals.
A goal is like a destination: having made up your mind that you are headed there, you need to work out how exactly you will 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.
' The reasoning is usually something to the effect that only such affluent people have money that is 'substantially enough' to warrant the enlistment of the services of a professional to help in planning its expenditure! But this way of thinking is largely informed by a misunderstanding of what a financial planner really is, and what their role is all about.
A financial planner's work is not all about helping people 'plan how they will spend their money.
' In fact, strictly speaking, that is not even one of the things a planner does.
A financial planner is, rather, a professional who helps people come up with good financial goals, and plans for the attainment of those goals.
Planning how they will be spending their money may, of course, turn out to be a way in which a planner can help them towards the attainment of their goals, but that is by no means the main thing done by the financial planner.
The work of the planner is about the identification of financial goals, and the definition of plans for the attainment of those goals.
Once you start viewing a financial planning as a professional who can help you formulate your financial goals and define plans for the attainment of those goals, it will instantly become clear to you that it is in fact people of modest means who need the services of the financial planners more.
The assumption here is that the affluent people have attained most of their financial goals (hence their affluent status) - and whilst they still need the services of planners, in order to protect and keep their wealth, it is their humbler counterparts who need those services even more.
The first way in which the modest income earner can benefit from the services of a financial planner would thus be in the formulation of some good financial goals.
While there is nothing wrong with being a low income earner at the moment, it would be unfortunate if you find yourself in the same situation ten years down the line.
Yet that is precisely where you are likely to end up, if you don't set financial goals and work towards their attainment.
The second way in which modest income earner can benefit from the services of a planner would be by exploring - with the financial planner - ways of increasing that income.
Of course, increasing the income is just one of the financial goals that can be set, but it is worth of a mention on its own - because income increment tends to be the most bothersome issue for low income earners.
The third way in which the modest income earner can benefit from the services of a financial planner would be in the formulation of some plans for the attainment of the financial goals.
A goal is like a destination: having made up your mind that you are headed there, you need to work out how exactly you will 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.
