Financial Planning is undoubtedly one of the major aspects in our lives. A proper financial planning will make sure that we achieve our financial objective in an effective and efficient manner.

Unfortunately, this is also the area where most people screw up. The statistic has been scary; more than 80 percent of populations are unable to retire upon reaching retirement age, due to the poor management of personal finance.

Financial planning is not being taught in our education system, and therefore we don't learn this valuable and important skill in school. However, book stores are choke full of books on financial planning and personal finance. As a Financial Adviser, I would encourage everyone to take up this financial education, as this undertaking will certainly pay huge reward in your life.

Here I would like to highlight a few important areas in a good and proper financial planning:

1) Insurance Planning

Personal insurance is a broad topic, basically it include life insurance, health and medical insurance, critical illness insurance, and disability income insurance. A sufficient and comprehensive insurance is absolutely critical.

In fact, insurance planning is the foundation of the financial planning, because without a comprehensive insurance planning in place, whatever saving and investment you do will be based on a shaky ground. When catastrophic strike, all your saving and investment can be easily wipe out.

2) Wealth Accumulation

This is the part that is more exciting than insurance planning. To grow your wealth, you need to save and invest. If you do nothing to grow your money, your wealth doesn't stay stagnant, it actually depreciating because of inflation. Therefore, it's essential to grow your wealth, even if you just want to keep pace with inflation.

However, I think you should be more ambitious than that. Depending on your risk appetite, you should be at least aiming at beating inflation.

There are many investment vehicles out there in the financial market, which include bond, Mutual Fund, Exchanged Traded Fund, share and stock, Real Estate, and Forex trading.

For beginner, an easy way to start is to invest in mutual fund, as the fund is being managed by professional fund manager.

But of course, the best thing to do is to educate yourself about investing.

3) Retirement Planning

Retirement is one of the most important life events many of us will ever experience. From both a personal and financial perspective, realizing a comfortable retirement is an incredibly extensive process that takes sensible planning and years of persistence.

To have a comfortable retirement lifestyle, the first step is to determine how much you require on a monthly or annually basic (factor in the inflation).

With that numbers in mind, it's time to build your nest egg. It takes lots of planning and discipline in order to achieve that.

Many aspects need to be considered, including how many years you have before retirement age, income and saving rate, risk appetite, investment strategies and others.

Financial Planning appear to be complicated to most people, that's why they never get started. But the truth is, if you learn the basic of financial planning, you will master it very soon, it's not as difficult as most people thought it is. And, the payoff is tremendous.

Start your financial education journey as early as possible, because when it comes to financial planning, time is your best friend.

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