Most people would like to get to grips with their finances more effectively, but many are daunted by the prospect. Money and finances are not subjects that lie solely in the domain of the professional; they are issues that affect our everyday lives.

It is important to consider the consequences of the steps you take and not simply take things on trust. Customers can no longer simply rely on the advice of those who are trying to sell them products, as ultimately, the responsibility lies in your own hands.

Effective financial planning helps you make the most of your money, identify and target your future goals and find the products that will help you achieve those goals. It should also give you the insight to cope with unexpected future events, such as illness, unemployment, additions to the family and so on.

In general, you'll need to:

• Identify and prioritise your goals.
• Check your resources.
• Find the right products.
• Select the right company.
• Monitor and review your plan.

The approach you will take will vary according to the goals you have identified. For example, if your goal is to set up house with your partner, you may want to make sure that you protect your partner if you become ill, lose your job or die.

Other goals may include taking your borrowing in hand, building an emergency fund, saving for retirement, paying for your children's education, investing to boost your savings or income, or planning for long-term care.

The products that will help you to meet these goals will depend on a number of factors:

• What you can afford to do.
• Your state of health.
• What your attitude to risk is.
• What your tax position is.
• What timescale you are interested in.

Make sure that whenever you are considering a product, no matter how well recommended it comes, that you check it against these factors. If a product or service does not suit your circumstances, you may be storing up trouble for later.