There is a famous saying - "No one plans to fail, but fail to plan." that show how planning is important in our life. There is no exception for personal financial planning too. Personal Financial Planning is a complicated process that helps a wise individual to plan their budgetting, saving, investment and retirement. It is a plan that everyone should have to ensure a individual will have enough money to maintain their standard of living even after they retired.
A lot of people have the perception that Personal Financial Planning is only for those who are rich or have a big amount of wealth. This perception is obsolutely WRONG.Personal Financial Planning is IMPORTANT for every individual. Some individual think that they should only start their Personal Financial Planning when they have considerable amount of wealth. This is another WRONG perception.Personal Financial Planning should start as earlier as possible for an individual. Imagine if an individual does not have experience to have their own personal financial plan for a small amount of wealth, how can they create and manage a personal financial plan for big amount of wealth.In a nutshell, Personal Financial Planning is a continous process that every individual should have as earlier as possible. It is like a behavior or attitude in life.
Nowadays, there are more and more of certified financial planner on the market. Some individual will rely on those certified financial planner to plan for their personal financial plan while some individual will like to manage their own personal financial plan.Both ways have the pros and cons but it will depend on each individual's preference. Some individual are not interested in personal financial planning. Hence, it will be easier for them to rely on certified financial planner to provide them professional financial advise.Some individual would like to learn personal financial planning skill themselves and come out their own personal financial plan although they might not as professional as certified financial planner.
Come down to detail of personal financial plan, it is about three thing - wealth accumulation, wealth protection and wealth distribution.Most of the individual will struggle in wealth accumulation for a long period as we only have four legal way to create wealth - marry it, inherit it , win lottery or spend less than you can earn.Obviously, only one of those options is realistic for most people.To conclude, everyone will need to have their own personal financial plan to budget their expense, save money, and investing to accumulate wealth.