Cynthia Kett, principal at Stewart & Kett, an advice-only financial planning, investment consulting, and tax services firm in Toronto, says understanding the concept of financial planning can be a challenge for some people.
“It’s much more than just budgeting, saving or having a good investment strategy,” she says. “Financial planning is a long-term process towards achieving personal goals, needs and priorities through the proper management of your financial affairs.”
She too believes the reluctance of many people to develop a financial plan is the biggest mistake they make.
“Some people don’t even have an idea of how much money they spend each month, let alone what they need to do to manage their money effectively and plan for the future,” says Cynthia. “It’s like any other problem; if you don’t know where you’re at, how are you going to know if you are improving?”