“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”
Financial Planing is the process of thoroughly calculating your resources (Income, savings, assets, ROI etc.) and subtract them from your liabilities and future expenses. A process that we call “The Shortfall Calculation”. This can be done in a simple way just by sitting and thinking about those two main categories of your personal finances (what’s incoming and what’s outgoing) and it will give you a rough idea about how you need to manage your finances.
The other way is to meet with a Financial Advisor and go through this calculation together where your he will give you a professional consultation on how to maximize your resources and use them in the best efficient way, while advising you on how and where you should save and invest, he will also guide you through the steps to have a healthy financial life and cover all your assets and protect your family and loved ones.
When you get a proper Financial Plan, and through the Shortfall Calculation, your financial advisor will calculate for you item by item and in extreme details how, what and where you spend your income, you will get to see numbers, habits and spending patterns that you would have never thought you had. You will also know more about the optimum way to divide your resources, where you need to spend it wisely on Essentials, Life Style and Future with some specific percentages.
One of the main benefits of having a financial plan through a having a personal financial advisor, is having the go to person in anything and everything related to one of your most important aspects in life.. your finances. You can ask questions like should I buy this item or that? Is real estate good for me or not? Is investing in a crypto currency a good or bad idea? I have some cash, whats the best way to put it to use? and much more.