Strategic Planning

Strategic planning is a vital best practice for a financial planner. It can help them proactively identify a firm’s goals and determine how it will allocate its resources to achieve them.

The strategic plan should also be a living document that is constantly reviewed to ensure it remains effective. It should define objectives, goals, and metrics to monitor progress against the strategy.

A good strategy should include a detailed implementation plan that lists strategy leaders, a timeline (including interdependencies), and resources needed to meet strategic objectives.

Strategic plans are frequently revised in response to changing conditions, such as new regulations or business opportunities. In such cases, the method may need to be adapted to redefine objectives or change progress metrics.


financial advisor will always recommend budgeting as an essential best practice in financial planning, as it helps you manage your monthly expenses and prepare for life’s unpredictable events. It also gives you a sense of control and prevents you from going into debt.

Whether you use a software program or a notebook and pen, it’s a good idea to track your income and expenses to see how much money you have left. This helps you figure out where your money is going so that you can plan to save more.

A budget is a great way to manage your finances and make sure you have enough money to live the lifestyle you want. It’s also a great way to keep track of your spending so that you know where all your money is going and where you can cut back on your spending.

Preparation for Economic Challenges

A major concern for many businesses is surviving a downturn in the economy. To help mitigate the impact of a recessionary meltdown, business owners need to be proactive and opportunistic in their dealings with creditors, vendors, and competitors. While the best ways to achieve this objective vary, one of the simplest and most effective steps is to employ an internal finance team to monitor and improve the cash flow. Among other things, this should include effective and efficient use of capital and an enviable record-keeping system. Moreover, a formal business plan should be drafted and updated regularly based on changing economic conditions to ensure you are prepared for the worst.

Financial Risk Management

A central best practice in financial planning is having enough savings aside for unexpected events. It’s essential to have a minimum of six to 12 months’ worth of revenue in savings to cover expenses in case of a recession or other emergency.

This practice is vital in ensuring that you can still meet your obligations if you lose an income or if something else happens to your business. It’s also a good idea to review your risk management plan annually.

Financial risks are an inevitable part of doing business, but you can reduce them with effective strategies. By identifying the risk levels specific to your business, you can prioritize them and develop ways to avoid them. You can also outline steps to manage them should they happen.