Financial planning is a well-organized strategy for maintaining your financial health and accomplish your financial goals. It is essential for you to contemplate and develop a financial plan, centred round your unique circumstances, desires and objectives. This entails assessing where you are now versus where you want to be (financially) at a specified time.
There are several things that you need to consider when you are looking at a financial plan for your future.
- Setting Goals
Consider what you want your lifestyle to be in the future both near and distant and create a comprehensive outline of your goals from intellectual, occupational, lifestyle, residential and retirement goals
- Get Organized
Create a filing system consisting of tax returns, bank statements, insurance information, contracts, receipts, wills, deeds, investment plans and any other type of document that is related to your finances
- Start with a simple Budget
Budgets will help you determine how you are going to reach your financial goals. You can identify and review your spending habits. Determining these spending habits helps you identify unnecessary monthly expenses that you can redirect the “wasted” money.
- Estimating your Projected income
Review your future plans and possible income increases. You will look at areas such as salary increases in a career, starting your own business, investment income, inheritance and of course unexpected income
- Setting Deadlines and Commitment
Ensuring that you have a set time frame in order to accomplish your goals and having an extended budget for your future goals will keep you on target to achieve your financial goals of the future. Remember that it is not enough to just write your plans on paper. You must commit to adhering to the steps you have outlined for yourself.
Financial planning is a goal and not a process and that you will probably need to update it as your life’s circumstances change. If you find that your income is not enough to accommodate your goals, then you will need to look at reformulating your plan or look at a more realistic goal framework. Proactive Accountants and Financial Solutions have a dedicated team that are ready to help assist you with your financial planning goals. Chat to our team today.
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Fax: 07 5677 0614