Most long term savings tips depend on systematic and consistent investment strategies that are suitable for salaried people. When it comes to working professionals like actors, doctors, artists etc., the income flow can be high but sporadic whereas most of the expenses are periodic like rent, groceries, salary (household assistant/driver, etc. for), other maintenance and upkeep. Certainly, a high level of financial discipline is required for them to handle a seamless transaction and life.

It is therefore a matter for financial planning, although the approach may be different from the traditional one. Irregular income cannot deter them from pursuing financial planning or an advisor to deal with it. A major consequence of pursuing financial planning is gaining knowledge about future goals and how much it will cost. It clarifies the numbers for various dreams and aspirations.

While the general belief of professionals is not to need to retire due to age, but the idea of ​​a comfortable and enjoyable life is pursued by every individual and financial planning will be helpful in achieving this. Irrespective of the nature of earnings or the quantum of earnings, certain aspects like risk, taxes, budget etc. are customary. A financial plan addresses these concerns and helps in bringing about solutions.

For example, a doctor will rely on clinical reports and his own observation to arrive at a correct prescription. Similarly, an actor understands the role/character, looks at the script, rehearses/memorizes it and then emotionalizes it. Similarly, a financial plan helps to identify cashflows (budget), potential areas to be plugged (discretionary spending), savings habits (based on needs, emergencies), investments (creating wealth) and to consume the funds (distribution). So, how a professional will go through a systematic and diligent approach towards their work, a financial plan will also take care of their finances.

Catch: Having a financial plan helps them to spend, plan future expenses in advance. It brings convenience of control as it minimizes negative surprises. Intermittent flow spoils stability if not well planned and executed. A constant tab on expenses is essential and a financial plan helps in reconciling the pattern.

In the driver’s seat: Once the finances are in good shape, they can better focus on their work. Not worrying about tomorrow only increase their creativity (actors/actors) and use financial planning to work with reverse calculation i.e. plan income matching the needs of the target. An advisor to one of my clients revised his fees once per session. He realized the need for investment.

Let the money do the work for you: Being a professional, keeps the person fully engaged and engaged. It is very difficult to track and maintain how earnings are profitably deployed. A financial plan helps to determine each investment, allowing them to be held for a long period of time so as to yield the best results. Also, by mapping goals, a purpose is clearly associated with each investment, which makes the entire experience fruitful.

Retire Not Retire: Retirement does not always mean that one has to stop all work and sit at home. As a professional one can continue to pursue his passion, but it is done for fun and not for earning. Ensuring optionality through wealth accumulation should be a goal that professionals can explore. Furthermore, if one were to engage in philanthropy or protect and transfer assets to the next generation, a comprehensive financial plan is the starting point.

Where is your financial therapist: Doctors also do not recommend self-medication. The DIY (Do It Yourself) method can only stretch to a point. Not because investing is too complicated or efficient, but because most of us lack the desired temperament or time. A financial advisor will be a neutral person who will come in handy while making decisions. He can act as a speed breaker in your train of thoughts that can avoid the pitfalls of emotional judgments. He will be beneficial in making, tracking and reviewing a plan as per the defined goals.

Ideas are personal: Naresh Kumar from Hyderabad is the co-founder of “Velocity” a wealth management firm

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