What is financial planning, we all make a lot of decisions every day. Starting from waking: we have to make a decision whether to immediately get up and shower, or lazing moment. Choosing clothes to wear, choosing what would breakfast, reading the newspaper at home or in the office, and so on.
Most of these decisions may be simple and have fewer trivial consequences. But we realize it or not, some of the decisions we have to make is quite complex and have a long effect on our finances. For instance, when choosing which would save, how much investment, what insurance you choose, buy a house where, what car to buy, ect.
Unfortunately, when making a decision only a few people who pay attention to how to make better decisions. And only partially aware that what is done today will greatly affect their condition in the future.
From the point of finances, make plans for the future, including the strategy in managing money. Starting from the get, use, invest, give alms, to bequeath; called Financial Planning.
With financial planning, families are invited to plan their financial future as early as possible. Ranging from financial planning is to fund children's education, retirement funding, anticipated financial risk, inheritance planning, and other financial goals such as buying a car, house, and so on.
Let us arrange a financial plan
Three steps in the financial plan:
1. Understand your financial position
2. Identify and prioritize your goals
3. Design a concrete plan
Seems hard? Not really. Just do it, after a long time will feel easy. The financial plan should dye your daily life. Familiarize yourself that every day, while thinking and acting, budgeting and wise decisions about saving and investing in it. Not a bad habit anyway, so why do not you practice from now on? Yet increasingly frequent practice, felt more simple. In fact you may even be interested in depth.
The First Step
Well, if you are going steady financial planning, it's time you actually do it.
1. Financial Goals
Make a list, and to be 2 columns. Fill the first column with all the short-term goals, fill the second column with all the long-term goals.
2. Priority
Mark the financial goals are MOST IMPORTANT to you at this time.
3. Concrete actions
Create a new list, write down what concrete steps that you can do in order to achieve the most important goals (that you marked in step 2). For example: saving money, buy insurance, invest, etc..
4. Budget
Create a budget based on step number 3.
If so, congratulations, you've just finished drawing your financial position.
Try lyrics again all the new list and the budget you make it. There is a financial commitment, there are goals you have homework you should do, as well as options to expand wealth at the same time protecting
And the process was Continues ...
Up here you know you have not finished the task. The financial plan does not stop with making a list and a budget once. You need to repeat the above four steps as often as possible throughout life. Earlier is definitely better!
But also bear in mind that what you are doing now is not too late. By reading this article, you deserve a thumbs up. And even better if you stop reading for a while.
Come on, stop reading. Take a paper and pencil, immediately make a list of financial goals and budgets. So that you know where your financial position, and that money does not make you a migraine recurrence.