There are plenty of of us who live under the impression that’ only rich individuals want the services of planners.’ The reasoning is commonly something to the effect that just such affluent folks 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 misconception of what a financial planner is really, and what their purpose is all about.
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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’s not even one of several things a planner does. A financial planner is, actually, a professional who helps individuals come up with great 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’s by no means the primary thing accomplished by the financial planner. The job of the planner concerns the identification of financial goals, and also the definition of plans for the attainment of those goals.
As soon as you begin viewing a financial planning as a professional who can enable you to formulate your financial goals and define plans for the attainment of those goals, it will promptly become evident to you that it’s in fact people of modest means who need the assistance of the financial planners more. The assumption here is that the wealthy folks have attained much 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 earliest way where the modest income earner can benefit from the services associated with a financial planner would thus be in the formulation of good financial goals. While there’s nothing that you do not like about being a reduced income earner at the moment, it would be sad in case you find yourself in the same situation 10 years down the line. Still that’s precisely where you’re very likely to end up, if you do not set financial goals and work towards their attainment.
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, maximizing the income is only one of several financial goals that may be set, but it is worth of a mention on its own – because income increment tends to become most bothersome issue for low income earners.
The third way in which the modest income earner can benefit from the services associated with a financial planner would be in the formulation of a few 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 exactly how you are going to get there. That’s what a financial plan does. It comes after the formulation of financial goals, and is basically made up of (practical) strategies for the attainment of those goals.