Financial planning tips for everyone
The great self-improvement author Alan Lakein once said, Planning is bringing the future into the present so that you can do something about it now. Considering the same quote with finance, financial planning would be bringing future financial problems to the present so that you can do something about it now to make your future more secure. Financial planning is the process of making smart, calculated decisions about money that help you achieve the goals you set for yourself.
Now, there are several types of financial planning ranging from children’s future planning to tax planning to even retirement financial planning.
This article is going to focus on financial planning tips on a more personal level.
How to develop a financial plan
- Set your goals for the short-term and for the long run: For goal setting, follow the SMART approach-
S- specific
M-measurable
A-achievable
R-relevant
T-time bound: This is the most important parameter of all; you should be able to set yourself deadlines to accomplish individual goals, because without these you will be stuck, making no real progress.
Habits are the building blocks of life, so find out what habits you need to develop to attain your goals. It could be something simple like, “I’m going to carry a little diary with me in which I will note down everything that I purchase.” This sounds mundane but overtime you will hold yourself more accountable for the money you spend, and you will subconsciously develop tendencies to spend wisely.
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