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Flexibility is a master key for successful personal financial planning. An important quality to look for when selecting a personal financial advisor is to find a coach who will allow you to retain flexibility in your financial planning.
Flexible personal financial planning is better than having your asset bank tied up so tight it is inaccessible in case of an emergency. Think of it as having a “Plan B” to complement your ongoing “Plan A” financial map. Financial planning will have many goals, depending on each person’s individual circumstances, income and needs. Strong planning for the long term is advisable, but there should always be an “out” available for emergencies. The only other option for emergency expenditures would be to borrow cash and pay interest rates for that convenience.
Step one in flexible personal financial planning is to know what your total asset value is. Step two is goal setting to establish your ideal end point for all this planning. In step three, you and/or your personal financial advisor determines what plan will be most effective in reaching those goals. Step four is putting that plan into action by executing the plan.
The most important step, and the step where flexibility counts, is constant monitoring of the plan and making reassessments or adjustments when needed should an emergency occur.
|Sheri Ann Richerson|