Everyone has ideals in life. Anyone want to get married at a certain age, anyone wants to buy a house, anyone wants to buy a car, someone wants to prepare the school for their child and those who want to live well established in the retirement age. However, the desire is not easy to achieve, especially when considering the fact that there where the rate of increase in the cost of living is not comparable with the ability to generate revenue. Therefore everyone should have a financial plan in his life in order to achieve what it wanted.
The meaning of financial planning (Financial Planning) is the process of planning and managing personal finances / family in order to achieve what it wanted. People who work in the field of financial planning is known as financial planners (financial planner). The task of a financial planner is to help realize the dreams / aspirations of the client being helped to manage and allocate funds on productive investments. Basically everyone can be a good financial planner for itself or run it as a profession to help others. To be able to make a financial planning expertise it needed a major in finance.
In some countries that have been developed, to be able to work as a financial planner then required that the person has obtained the certification of an association of financial planners. There are some pretty credible associations in providing this certification several of which are The Financial Planning Association (FPA), which issued a professional title Certified Financial Planner (CFPÒ); The American Colleges who publishes professional title of Chartered Financial Consultant (ChFC) and Chartered Life Underwriter (CLU); and The International Association of Registered Financial Planners (IARFC), which publishes professional title Registered Financial Consultant (RFC). To be able to obtain the professional title of financial planner then a candidate is required to attend education in their respective organizations.
B. Needs Vs Desire
A financial planner should be able to explain to clients regarding the main difference between needs and wants. The need is fundamental and can not be abandoned. While the sheer gratification of desire is more that can be replaced with other alternatives. For example: the moment someone is hungry, to meet these needs so he can eat rice, bread or other food. It seems that the needs of the individual is to eliminate hunger, while the wishes are alternatives to meet those requirements that can be consumed rice, bread or more. Another example is the transport needs. Means of transport is an absolute must to be the removal of an object from one place to another. But for the transportation purposes one may choose to use a deer car, a BMW car or motorcycle to fit the budget they have. Here we can see that the requirement is a means of transportation, while the desire to be a car or a motorcycle. So the need is fundamental, while the desire is secondary.
A financial planner for planning purposes-both the personal or act as a consultant-must be able to make him / her client a financially stable. There is a difference between a well-established with them rich. The rich man is one who has a wide range of assets in large amounts in excess of what it needs. While a financially stable could mean that the person has assets in a limited number, but he was able to meet all needs. For that to make myself / clients become a well-established financially is very basic demands. In order to become a well-established financially, then that person should be able to sort out which include needs and which are mere wishes. After sorting it and then made a priority which should take precedence and which are biased to be postponed.