Spring clean your finances

“Financial planning is the process of arranging your financial affairs optimally to address the financial risks you face and works towards the goals you have,” said Riaan Strydom, financial adviser at PSG Wealth, an independent financial services group that extends its services in the Sandton area.

The month of September also brings with it National Financial Planning Week from 7 to 11 September.

Strydom said it was important to clearly identify priorities when structuring a financial plan, as the objective was to allocate money to addressing the risks you and your family face.

“Once you have identified your priorities, you need to assess the potential impact of these risks occurring,” he added.

“The results of this analysis will show you how much additional risk cover or savings you will need or, in other words, how much it will cost to fix any problems or shortfalls in your plan.”

To kick off the spring cleaning process, Strydom said people needed to allocate funds from their budget aimed at addressing their financial needs and goals.

“Many people I consult with have absolutely no idea what they are spending their money on,” he said.

“A proper budget will guide you through your day-to-day financial decisions, as well as provide a framework to make provision for the goals set out in your financial plan.”

He added that the responsibility of monitoring and reviewing a financial plan lay jointly with you and your financial planner.

“Saving is what you do before you spend, not what you do with the little bit of money that is left over at the end of the month,” explained Strydom.

“This calls for a structured and disciplined approach within the framework of your financial plan.”

Details: www.psg.co.za

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