How to become a Certified Financial Planner

Lots of my friend ask me on how to become a Certified Financial Planner. Of course we must study first to become a certified financial planner but how?

I got my answer when I google it.

According to FPAM, the candidates must meet four requirement of the certification process that is Education, Examination, Experience and Ethics. That is 4 E that you are required to meet.

For Education, you must complete acedemic course of financial planning which consist of 6 module.

• Foundation in Financial Planning
• Risk Management and Insurance Planning
• Tax Planning
• Investment Planning
• Retirement Planning
• Financial Plan Construction and Professional Responsibilities

I have read 1/4 of the first module and the module is really though. I think the fastest that anyone can complete this course is around 6 month which mean we study 1 module per month which is only my estimation. The actual process may take longer than that.

After that, Examination which means that you are eligible to take the certificate examination after you complete your Education process. The examination should be tough as they want to produce the CFP so that they can perform on appropriate level for the public.

Next is Experience where you must understand the counselling nature of personal financial planning. You are required to have 3 years of experience, performed before of after you complete the examination. This is what FPAM define the experience requirement.

Experience requirement is defined as the supervision¹, direct support², teaching³, or the personal delivery of all or part of the personal financial planning process to a client4. Qualifying experience must be able to be categorized into the six primary elements of the personal financial planning process summarised below:

• Establishing the client-planner relationship.
• Gathering client data.
• Determining the client's financial status.
• Developing and presenting a client-specific financial plan tailored to meet the goals and objectives of the client.
• Implementing the financial plan.
• Monitoring the financial plan.

And then Ethics which you can find it here.

After all the above process, you can now receive an application form for certified membership. Once certified, you are required to study more so you will be up-to-date on planning strategies and financial trends that will affect your future clients.

Next year, I will try to take this certificate financial planning. So that one day I can become a certified financial planner myself. If want to know more on certification, you can go to FPAM website.

Motivation

Everybody hates to fail, but sometimes they conceded that they fail. They fail to do something that they want, they fail to get something that they desire, and they fail to act when necessary. After they fail, they tend to give up and did not try again. These people did not motivate themselves and they sulk when they fail. People who earn success did not sulk, if they did, they will come back stronger until they find success that they need. This people are the one who always motivate themselves that they can find something that they want and what they desire.

That's why motivation is a strong tool for success. Motivation is also tools for those who want to be debt free and free from financial difficulties. Managing and facing debts are really tough job that required you to be mentally strong. I have encounter many people who fail and just give up. This people lack motivation. They did not read motivational book thus dail to motivate themselves.

There are always source to motivate yourself. Reading motivation books or even better, reading financial motivation books. I find that Robert T. Kiyosaki books are not only increase your financial IQ, but it also motivate yourself to become stronger. Even Mr. Kiyosaki motivate himself when he is in difficult position and look where he is now. If he just give up, he will not be there to guide us.

People who dare to fail and don't give up usually find success. But motivation is an important tool to achieve what you want in life. I really recommend you to find Robert T. Kiyosaki books. Read it until you can motivate yourself and that is when you are prepared to taste success.

Some financial tools

Overdraft is a great financial tools especially to a business people.

Why??

Because the overdraft facilities can track where the money go. So basically, the overdraft facility can help them to calculate the expenses as well as the income.


What is overdraft (OD)?
An OD is a credit facility that the bank gives, it is the same as personal loan but overdraft charge the interest when to the amount that you used so if you used just 1k so you just pay 1k of the interest.

Lots of people thinks that the OD can be used by business people. They were wrong. The OD can be a great tools for people who wants to plan their financial properly. Financial mistakes that everybody seems to make is that they did not monitor where their money gone so with OD, they can track where the money gone and for what purpose.

Can everybody use OD?
As stated above, all people who don't have any CCRIS or CTOS can use OD but they must learn to do it. What is the mechanism and how to use OD properly so it can benefit you and not the banks. So learn from the expert, from the person who have an experience or a Financial Planner like Aziz CFP.

Conslusion?
OD is a tools for your financial planning. It is not the solution.