Introduction
The world is at a crossroads. With increasing income inequality and a growing divide between the haves and the have-nots, the need for financial empowerment has never been greater. At the Academy of Life Planning, we believe that the key to unlocking this empowerment lies in separating financial planning from financial advice. This distinction is not just a matter of semantics; it’s a paradigm shift that has the potential to raise the living standards of 60% of the world population above the empowerment line.
The Problem with Financial Advice
Traditional financial advice often focuses on recommending specific investments based on a client’s circumstances. While this approach has its merits, it may not guide the creation of a sustainable livelihood, which should be the primary planning focus for most people. Financial advice often excludes advice on making money and building a solid financial foundation. Moreover, financial advisers often operate under assets-under-management (AUM) fee models, which can lead to potential conflicts of interest and higher costs for larger portfolios.
The Power of Financial Planning
Financial planning, on the other hand, is a holistic approach that goes beyond just managing assets. It involves identifying productive resources, leveraging entrepreneurial opportunities, and creating sustainable livelihoods. A well-rounded financial plan consists of two essential components:
1) Generating income through a sustainable means of livelihood, and
2) Building savings from the income you have already earned.
The Academy’s Approach
Our mission at the Academy of Life Planning is to activate people and their finances so they can self-create their favourite future, create sustainable livelihoods, and manage the money to support it. For a subscription of £19 per month, Planning My Life members gain access to a wealth of planning resources, including a library of planning tools, tests, videos, and a community of like-minded planners.
Global Impact
By making financial planning accessible to all, we aim to leave no one behind. We believe in the potential to contribute to ending world poverty, aligning with broader humanitarian goals. With the right sponsorship, we could practically give financial planning away for free, creating equal rights and access for all.
Conclusion
Separating financial planning from financial advice is not just a disruptive idea; it’s a transformative one. It empowers individuals, creates sustainable livelihoods, and has the potential to raise living standards globally.
Further Listening
For more insights into this transformative approach, listen to our interview on FT Adviser, a 30 minute latest podcast.
Academy of Life Planning 