Financial Planning Resources

Extend your financial planning knowledge through our resources which include blogs, podcasts, events and more.

What Is Financial Planning?

In this blog, Dennis Hall runs through the basics of financial planning, why it is important, when to consider making a financial plan, and what steps are involved in the planning process.

Your path to financial independence: A comprehensive guide to Financial Planning

In its simplest form financial planning is the process of identifying your (financial) goals, assessing your current financial situation, and then creating a roadmap to help you achieve those goals. At a deeper level it involves analysing your income and expenditure alongside your assets and liabilities to develop strategies for saving, investing, and managing your money effectively.

Why is Financial Planning important?

Financial planning is crucial because it helps you make informed decisions about your money and allows you to align your finances with your life goals. It provides a framework for managing your finances efficiently, building wealth, and achieving financial security for you and your loved ones.

Who needs a Financial Plan?

Anyone who wants to take control of their finances and work towards their financial goals can benefit from a financial plan. Whether you are just starting out in your career, planning for retirement, or navigating a major life event, such as marriage or starting a family, a financial plan can help you make the most of your resources.

Financial planning is the cornerstone of wealth management, enabling individuals to align their resources with their life goals.
Dennis Hall - Founder & Chartered Financial Planner, Yellowtail

When should I consider making a Financial Plan?

It is never too early or too late to start financial planning. Ideally, you should consider making a financial plan as soon as you have income and financial goals. Whether you are a recent graduate, a mid-career professional, or approaching retirement, having a financial plan in place can provide clarity and direction for your financial journey.

Are there different types of Financial Planning?

Financial planning provides a top-down approach to managing your financial affairs. As part of the process, we examine several areas to manage your needs and objectives. Each serves a specific purpose and plays a crucial role in helping you achieve your financial goals and safeguard your financial well-being. Here are some common examples:

  1. Retirement Planning: This focuses on building savings and investments to provide income during your retirement years. It involves estimating retirement expenses, projecting retirement income, and creating strategies to ensure financial security during retirement.
  2. Investment Planning: This involves developing a strategy to grow wealth through various investment vehicles such equities, bonds, savings, and property. It considers risk tolerance, investment goals, and time horizon to create a diversified investment portfolio aligned with the investor’s objectives.
  3. Tax Planning: Tax planning aims to minimise tax liabilities by strategically managing income, deductions, and investments. It involves understanding tax laws and utilising tax-efficient investment strategies, such as pensions and ISAs.
  4. Estate Planning: Estate planning involves creating a plan for the distribution of assets and wealth after death. It includes drafting legal documents such as wills, trusts, and powers of attorney to ensure assets are transferred according to the individual’s wishes and to minimise estate taxes and probate costs.

What Does a Financial Plan Cover?

A comprehensive financial plan will typically cover various aspects of your financial life. It should consider your short-term and long-term goals, as well as any unique challenges or circumstances you may face. Here are the 10 most common elements:

  1. Budgeting: Creating a budget helps track income and expenses, enabling better control over spending habits and prioritising financial goals.
  2. Savings Goals: Setting specific savings targets for short-term needs (e.g., emergency fund) and long-term goals (e.g., retirement, education).
  3. Investment Strategy: Developing a plan for allocating assets across different investment vehicles based on risk tolerance, time horizon, and financial objectives.
  4. Debt Management: Evaluating and managing existing debts, including mortgages, loans, and credit card balances, to minimise interest costs and accelerate debt repayment.
  5. Insurance Cover: Reviewing insurance needs and selecting appropriate policies to protect against risks such as health, life, disability, and property damage.
  6. Retirement Planning: Estimating retirement expenses, determining retirement income sources (e.g., pensions, savings), and developing strategies to achieve retirement goals.
  7. Tax Strategies: Implementing tax-efficient strategies to minimize tax liabilities and maximise after-tax returns on investments.
  8. Estate Planning: Creating a plan for the distribution of assets, minimising estate taxes, and ensuring assets are transferred according to the individual’s wishes.
  9. Emergency Fund: Establishing a cash reserve to cover unexpected expenses or income disruptions, providing financial stability during challenging times.
  10. Regular Review and Adjustment: Periodically reviewing and adjusting the financial plan to reflect changes in goals, financial circumstances, and externalities such as market conditions, and tax changes, ensuring the plan remains relevant and effective over time.

Each of these elements play a crucial role in the overall financial plan, working together to help individuals achieve their financial goals and navigate life’s financial challenges with confidence, clarity, and control.

Financial planning isn't just about money; it's about creating a roadmap for living the life you desire.
Dennis Hall

How much wealth do you need for Financial Planning?

Financial planning is not just for the wealthy; it is a valuable process for individuals at various income levels. The amount of money or assets needed to make financial planning viable depends on several factors, including your financial goals, current financial situation, and complexity of your financial affairs.

While some financial planners may have minimum asset requirements for their services, many offer advice on budgeting, debt management, and basic investment strategies that can benefit individuals with modest incomes. Even if you are just starting out with limited resources, engaging in financial planning early can lay the groundwork for building wealth over time.

The value of financial planning lies in the guidance and strategies it provides for managing your finances effectively, regardless of your current net worth. Whether you have thousands or millions, having a solid financial plan in place can help you make the most of your resources and work towards your financial goals with confidence.

What steps are involved in Financial Planning?

The financial planning process typically involves six key steps:

  1. Setting Goals: Identifying your financial goals and priorities.
  2. Gathering Data: Collecting information about your income, expenses, assets, and liabilities.
  3. Analysing Your Financial Situation: Assessing your current financial position and identifying areas for improvement.
  4. Developing Strategies: Creating a customised plan to help you achieve your goals, which may include budgeting, investing, and risk management.
  5. Implementing the Plan: Putting your financial plan into action and making any necessary adjustments.
  6. Monitoring and Reviewing: Regularly reviewing your progress towards your goals and adjusting your plan as needed.

Learn more about our financial planning process.

Is it easy to build a financial plan myself?

While it’s possible to create a basic financial plan on your own, many people benefit from working with a professional financial planner. A qualified planner can offer expertise, objectivity, and tailored advice to help you navigate complex financial decisions and optimise your financial strategy for your unique circumstances.

When should I speak to a Financial Planner?

You may want to consider speaking to a financial planner if you are facing significant life changes, such as getting married, starting a family, changing careers, or nearing retirement. A financial planner can also provide valuable guidance if you are seeking to optimise your investment strategy, minimise taxes, or plan for long-term financial security.

How do I adapt my financial plan if my finances or lifestyle change?

Financial planning is a dynamic process that should be flexible enough to accommodate changes in your life and finances. If your circumstances change, such as receiving a windfall, experiencing a job loss, or encountering unexpected expenses, it is essential to review your financial plan and make any necessary adjustments to ensure it remains aligned with your goals and priorities. Regularly revisiting and updating your financial plan can help you stay on track and adapt to life’s twists and turns.

By understanding the fundamentals of financial planning and working with a trusted financial planner, individuals can take control of their finances, optimise their wealth, and achieve their financial goals with confidence. Whether you are planning for retirement, building a legacy, or simply seeking financial peace of mind, a well-crafted financial plan can be your roadmap to financial success.


In conclusion, financial planning is a vital tool at all stages of life, regardless of income or assets. By setting clear goals, analysing your financial situation, and implementing strategies tailored to your needs, you can take control of your finances and work towards a secure financial future.

Whether it is saving for retirement, investing for growth, or protecting against unforeseen risks, a well-crafted financial plan provides a roadmap for achieving financial success. By embracing the principles of financial planning and seeking guidance from qualified professionals when needed, you can navigate life’s financial complexities with confidence and peace of mind.


Founded by Dennis Hall, Yellowtail are the trusted financial planners who advise individuals & families across the UK. Yellowtail’s experts provide the clarity, control and confidence to guide you through financial planning, estate planning, pension transfers and investment management directing your journey towards a prosperous retirement and financial peace of mind.