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At Intellichoice, we understand that it is easy for growers, farmers or anyone to become overwhelmed by the choices and options available when you start to consider developing your own financial plan.

The internet is a wonderful source of information (for just about everything) but sometimes too much information can make it harder to establish what is right for you.

Many farmers start researching what they should be doing and find themselves drowning in an ocean of information.

It all gets too hard and they give up.

In this article, we have broken financial planning down into three main steps to make it easier to understand. This is the way we view financial planning at Intellichoice.

Imagine if someone asked you to draw a picture of a house.

You would put down the floor first – building yourself strong foundations, in case something unexpected comes along. Then you would put in strong walls and finally you would draw the roof. That is how you could think of a good, long-term financial plan.

We consider the first step of a financial plan the foundations – or “floor” of the house. In terms of your plan, this means setting up a strong insurance base.  Most people already know and understand why you ensure your house and your car.

What is less commonly understood, although every bit as important is the need to insure yourself and your income. To do this properly, you need to consider what would happen if you were suddenly unable to work. How much money would you need to pay your mortgage and all our everyday living expenses? A good insurance plan will ensure that you (and your those that are dependant on you) are covered in the event of such a situation.

Once you are confident you and your family are covered in the event of an unexpected event, you can start to work on what we consider to be the “walls” of your financial plan.

For most people, the “walls” are your home and your superannuation. In most circumstances, the best plan is to pay off the family home as soon as possible. It is important to consider questions like “are we paying off the home loan weekly, or monthly?” “Can we pay extra – even if it is only $20 a week?”

Superannuation also falls into this category and it is important to make sure that superannuation funds are invested in the right risk category for your circumstances.

And finally, we consider the  “roof” of the financial plan, which is developing investments on top of and above your home and superannuation. These are often the key ingredient in insuring that you achieve the lifestyle goals you are seeking.