How Does Financial Personality Impact Financial Planning

 How Does Financial Personality Impact Financial Planning

Achieving financial independence and well-being takes the biggest piece of cake on the list of priorities set by an individual. However, the financial wellness envisioned by an individual requisites a meticulously crafted financial plan whose boundaries touch every integral aspect. A majority of individuals and even experts consider the investment segment the only roadway toward achieving financial independence. The former misconception hampers the velocity of achieving financial wellness and promotes biassed guidance by professionals with a vested interest in an individual’s financial plan. 

In contrast to the traditional or self-approach toward financial planning, financial advice and guidance through certified financial experts pave the way toward well-being. These certified professionals assess your financial habits and personality to formulate a financial plan that aligns with your objectives and interests. Apart from proffering expert guidance, they shed light on complex topics, such as tax planning, wealth management, etc. Yet, much of the emphasis is placed on understanding and helping an individual comprehend their financial personality, which ultimately affects their response toward instances concerning finance. 

Financial Planning & Financial Personality

These two interrelated concepts help individuals discern their reactions toward personal finance and mark it as the first step toward forming a financial plan. Financial advisors draw up a customised plan by taking into account the financial habits that an individual has while also blending their financial goals. The outcome of this assessment is an impeccable financial plan that caters to the aims of an individual. Below are a few elements that affect every financial plan. 

  1. Risk Capacity

Everyone perceives money and money management concepts differently. While some believe in huge savings, others believe in investing every penny they have saved. The success in the investment segment depends largely on a determined mind rather than a feeble one that crumbles upon emotions. Your personal finance advisor would suggest investment options that are either devoid of risk or high-risk instruments, depending on your willingness and capacity. 

  1. The Theory Of Spending & Saving

Are you an enthusiast who heads right away on a shopping spree upon receiving your monthly income? Or do you believe in accumulating a major chunk of your income in your bank? Either way, your professional finance advisor would analyse these aspects and guide you in the direction that does not disrupt your spending or saving habits. 

  1. SWOT Analysis

Being aware of your strengths and weaknesses is the key toward having affix signposts guiding you to the financial independence you yearn for. It can help your dedicated financial advisor to devise strategies that optimally leverage your strengths and aid in overcoming your weaknesses. 

Choosing The Right Financial Advisory Institution

While there are a plethora of platforms out there, institutions such as 1 Finance go beyond the ordinary in offering their services and helping individuals to actualize what they crave. Their efficient model for evaluating the financial personality of a user is backed by their patented assessment tool called MoneySignTM. It is designed using a stringent process to make the questions easy to interpret and answer, so as to assess the customers with maximum accuracy and in least amount of time, and to generate an output that the customers could find meaningful and worth their time. Based on the data derived from the MoneySignTM assessment, their certified financial planner and chartered wealth manager offer hyper-personalised financial advice that is instrumental in composing a holistic personal financial plan.



Issac Schultz