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Financial Planning in 6 Easy Steps

Key Points

  • Make an honest assessment of your financial status and formulate goals for improvement.
  • Create a spending plan based on your goals, and put it in action.
  • Keep track of your progress and refine your plan often.

Financial Planning in 6 Easy Steps

Budget, taxes, savings, interest, credit... These words that we hear all the time represent a vital aspect of financial planning. But how familiar are you with the financial planning process? Follow these steps to get the ball rolling:

  1. Assess Your Current Financial Status.  Be honest with yourself.  How much are you spending each month, and on what?  Are all of those expenses necessary?  How much have you borrowed?  How much are you saving per month?  Use our Budget Calculator to help you evaluate your current situation. 
  2. Formulate Financial Goals.  Where do you want to be in a year?  In two?  In five?  How do you plan on getting there?  How will your current financial state influence these goals?  Make sure to set long-term goals and short-term goals that will help you reach them.  Contact us to get more personalized help and answers to any questions you may have with this step.
  3. Identify a Course of Action.  Create a spending plan.  (Click here for pre-made spreadsheets to help you do this.)  Remember: the best budget is the one that works for you.  Base this budget on your short-term goals, always keeping your long-term goals in sight.  Once you've done this, set an appointment with us to get a free budget analysis and help you improve.
  4. Evaluate Your Options.  If you realize that your current spending habits aren't in alignment with your short-term and long-term goals, then adjust your spending accordingly.  If you need to save more, eliminate any remaining unnecessary costs from your spending plan.  (PRO TIP: Click here for money-saving ideas and resources to help you cut spending even more!)
  5. Implement Your Budget.  Now here is the real test: putting all of these goals and plans in action. Commit yourself to your budget and update it regularly.  Plan everything accordingly: create meal plans within your budget (see Helpful Recipes), plan your laundry around your budget, etc.  If you are getting close to your limit in a certain category, see where you can cut spending in that area.  Keep it mobile with these great apps.
  6. Review and Refine.  Were there unexpected costs last month?  Did you overestimate any costs and have money left over in certain categories?  Review your budget and adjust it accordingly while creating room for the upcoming month's specific expenses.

For further information, set an appointment with us to receive personalized guidance in your financial planning process.

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