Introduction to Execution of Financial Plan:
Strategic planning and execution of a financial plan often requires discipline and perseverance. Many people obtain assistance from professionals such as accountants, financial planners, investment advisers, and lawyers. Merely defining the objectives is not enough to be successful; you’ll have to accomplish them someday. In this era of instant gratification, “I want to get rich, quick!” is the mentality followed by many people and as a result of which they get cheated by con artists. Stock market is prone to numerous risks and while executing your financial plan you need to give a serious thought on what you want. If you want to become rich instantly (which is very unlikely) you might invest in stocks based on some stock tips from unaccredited source. Losing money in the stock market is very easy, but it is very difficult to make money fast in the market. The point is you need to have a clear vision and complete knowledge about the product or service you’re going to invest in. specifically speaking about the personal financial goals, you need to have a long term strategically sound plan. These goals may include paying off student loans, a new car, or a mortgage on a home. These events are not monthly or yearly, they require time. When it comes to financial matters, planning can be of paramount importance.
Creating a personal financial plan is further sub categorized in six basic and simple steps and the process starts with determining your current financial situation, then identifying and developing your financial goals then analyzing the situation and keeping an alternative course of action further it involves weighing the pros and cons of those alternatives finally you’re required to create and implement your financial action plan and then you’ve to regularly update yourself with the market and review and revise the financial plan timely.
Basically an execution plan is answer to “how-to” for your capital. To execute your plans on the off the table you’re required to input to your financial plan which will be based on your demands. It also serves as a tool that you utilize to manage the business, to communicate your critical goals and timing of deliverables, and to celebrate your successes on regular basis.
Role of Financial Planners in Execution of Financial Plan:
Financial planner is supposed to guide you in strategic planning and execution of financial plan with the virtue of his knowledge and experience in the field. He will provide you with numbers of options and will give his views on the recommendations based on your requirements. The only priority of his recommendations will be to accomplish your financial and personal objectives. Suppose you want to be a business person and you’re thinking of starting a business, there are a few key financial items that you should discuss with your financial planner.
- Break even analysis.
- Business ratio.
- Sales forecast.
- Personnel plan.
Your strategic planning and execution of financial plan should reflect your goals, and must be based on realistic expectations. You should not invest your hard earned money based on some rumors.
- Tutorial Course - Financial Planning Basics For Beginners -
» e-Learning Chapter 1: What is Financial Planning? Definition, Benefits and Importance
» e-Learning Chapter 2: Different Types of Financial Planning Models and Strategies
» e-Learning Chapter 3: Determine Financial Goals – Assessment, Budgeting and Goal Setting
» e-Learning Chapter 4: Benefits of Top 5 – Key Steps Involved in Financial Planning Process
» e-Learning Chapter 5: What is Optimism Bias – Definition, Effects on Financial Decisions
» e-Learning Chapter 6: What is Personal Financial Planning? Definition, Examples, Process and Template
» e-Learning Chapter 7: What is Business Financial Planning? Definition, Examples and Process
» e-Learning Chapter 8: What is Financial Planner? Definition, Scope and How to Become a Financial Planner
» e-Learning Chapter 9: Your Rights and Responsibilities as a Financial Planning Client
» Currently Reading: Strategic Planning and Execution of Financial Plan
» e-Learning Chapter 11: Financial Backup Plan or Emergency Financial Assistance
» e-Learning Chapter 11: Top 10 Worst Financial Mistakes to Avoid or Common Errors in Financial Planning