How financial planning works

Financial planning aims to achieve your life goals through proper management of your finances.

A qualified financial planner will generally use a six step process to help you take a 'big picture' look at where you are financially, and where you want to be in the future.

These steps are:

  1. gathering your financial data such as details on your income, debt level and commitments
  2. identifying your goals
  3. identifying any financial issues such as gaps between where you are now and where you want to be in the future
  4. preparing your financial plan, which will recommend investments and confirm your risk profile
  5. implementing your financial plan
  6. reviewing and revising your plan to ensure you remain on track to meet your financial goals.