What does a financial plan look like?

A good financial plan is designed to put you at ease. It tells you how likely it is that you’ll achieve your financial goals based on your current situation and it helps you plan your future financial behaviour. 

There is real power in creating a financial planning document. Once you do, you’ll know what actions you need to take now in order to have the best possible outcome in the future. That’s inspiring. But what exactly does a financial plan look like? 

In short, a financial plan is based on six key processes:

  1. Understand you and your current situation
  2. Set goals and objectives
  3. Identify critical success factors and barriers to achieving your goals
  4. Identify possible strategies 
  5. Implement the agreed strategy
  6. Continually review and monitor your strategy

These processes are comprehensive and typically involve your personal goals, debt, income, cash flow, investments, retirement plans, tax strategies, estate plans, investment strategies and more. 

Cash flow

Cash flow is the single most important component of your plan. If you bring in more than spend, you have a positive cash flow that allows you to add to your savings and investments. If you have a negative cash flow, you’re spending more than you have. Seeing this information in front of you will help spur you to change the situation.

Net worth

Net worth shows you how much you are worth by adding up all your assets and subtracting out all your liabilities. Your net worth changes over time based on your cash flow and how you invest, and your future net worth will be projected based on a number of variables. Your plan will tell you if you’re on a safe path or not, and by starting a plan early you can make changes where needed. 

Assets and milestones

How you invest will determine how your assets grow over time. Your financial plan will show you this and will help you to make informed decisions about investing and saving. Your financial plan will also make for allowances like your child’s education fees, that trip around Europe or your kitchen upgrade, and advise you as to the best course of action.

What our clients say

“Prime provides us a highly personalised service covering our financial needs. Our strategic advice has been proactively provided whilst ensuring our investments are professionally managed without requiring our daily input. We feel comfortable knowing Prime is looking after our investments.”

Ian, VIC

“In working with Prime, I have been connected with a trusted ‘go to’ source of knowledge, mentorship, tools, services, contacts and – most importantly – a friend on the ground for anything related to financial decisions when feeling a little overwhelmed.”

Amy, QLD

“I am very pleased with Prime. I have called my adviser when I have questions and have always received prompt replies and all of the support I needed.”

Bob & Denise, NSW

“We are busy running our business, which takes up most of our time! To have someone we know and trust in charge of our money is so comforting. I enjoy the quick and clear communications I have with my adviser and I trust his suggestions for our investments.”

Jack and Pauline, VIC

“We have worked with Prime for fifteen years as our financial adviser. Prime has always guided us through with professional advice on our financial decisions, whether it be in the local office or over the phone. We have found our adviser, Garry, has gone above and beyond the call of duty with regards to our retirement and financial matters in a friendly and caring way.”

Karen & Russell, QLD

“I find Michelle service to me is of high value. She is knowledgeable and transfers the information to me clearly. Thank you Prime.”

Kathryn, WA

“We have always felt that our advisor listened carefully to what we expected and responded appropriately. Livio is always interested in us as a couple and our lifestyle- we have never felt like we were bulk handled.”

Ian & Cherie, VIC

“I have been a client of Prime for just over 3 years and I am confident that the advice and service I have received during that time has been in my best interests.”

Lannette, QLD

“I have been using Prime for many years and one of the things I appreciate most is that their advice is only a phone call away and I always feel as a customer that Prime have my best interest at heart. It is a very personal service executed by very personable and helpful individuals. My advisor feels like family I am very satisfied.”

Christopher, ACT

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