Financial Plan Tips
One of the things you would need to have if you want to reach any goal is to have a plan. No matter how achievable your goal is, the road to reach that goal would depend on how well you plan on reaching it.
What is a Financial Goals?
Financial goals are the personal, big-picture objectives you set for how you’ll save and spend money.
What is a Financial Plan?
Financial Plan is a comprehensive picture of what you need to do for you to reach your financial goals.
Unfortunately, no matter how great your mentor or guru is, financial plans can’t be spoon-fed to each one. This isn’t a plug and play game rather tips can only be given for you to apply based on your individual chosen lifestyle. That being said, let’s dive in.
Here are our Financial Planning Tips:
1.Organise your finances. First, it is very important to know where you are before you plan where to go to. If not, it’s like staring on a map with a big “X” mark on your destination but not knowing how to get there because you don’t know where you are.
As humbling as it can be, let’s not deceive ourselves in doing this. Honesty would surely help you more on achieving your goals. There’s no need to be ashamed if you’re on deep debt or if you don’t have any savings in the bank. This way, you’ll have a better picture where to start and plan better on what to do so you won’t be on the same situation tomorrow, next week or a year from now.
2. Be Specific on your Goals. On making your financial plan, write clearly what you want.
Is it to have 1 million savings by the end of the year? Start a college fund of $1000 for each of your kids. Or even as simple as to lessen your eating out budget from $50 per week to $30.
The more detailed you are, the more you’re able to attain that goal faster. This would help you be more focused on your goal/s.
3. Sort out Short and Long Term Goals. Look at your list of goals and specify under which category would they fall, is it a short or long term goal?
I know someone who’s goal is to pay-off their mortgage in 1 year. Hmmm…can be if you win a lottery or found a new source of income that could help but if you’re a 9-5 employee with no other source of income, I’m pretty much sure you’ll get disheartened first before you even realise and just decide to go back to your old ways.
List your goals specifically where it should be according to its certain timeline. You know your income and your capabilities. Remember this goals are made not to make you go hungry or deprive yourself from living the lifestyle that you want.
4.Strategize. Now that you’re very clear on your goals and how long do you plan to achieve it, it’s time to write down the what to do to achieve it. I’m sure there’s a lot of money tips for every goal out there. I would be writing some in this blog soon as well.
As a rule of thumb, you don’t always need to follow what others tell you or what you read or watch. Always filter what is ONLY applicable for you and what you believe is true to your values.
5. Action. Are you as excited as I am in achieving my/your goals? Well, I am! This part actually is the part that is as important as you deciding to start to make a financial plan. Without this, all your time planning would go into waste.
It is also this part where your patience is most required. Sometimes it isn’t enough that you know your goal/destination. You need to be reminded regularly why you’re doing it, may it be for yourself, your family or children.
It also helps if the people around you are aware of your plan as they also play a vital role for you to achieve your goals. Your best friend updating you always on the latest sale could make you lose your focus on saving.
Better yet, hubby chiming in with your kids as they urge you to buy a new toy instead of reminding them that you’re on a budget. This can be tricky especially if its for your kids but you need to remind yourself of the big picture. Delayed gratification is the real-deal!
6. Measure your progress. Happy dance guys, you’ve made progress!!! Checking out how you’ve advanced on your journey helps you get more motivated on what you’re doing.
As they say, celebrate small victories. Give yourself a small treat whenever you’ve made it pass one stage of your goal. Remember, small celebration only maybe like eating out.
I hope this help you heaps! Nothing is impossible as long as you have the determination and will to do it.
You can do it mommy!