6 Steps Of Financial Planning

How To Plan Your Financial?

There are 6 steps in planning your financial:

1. ESTABLISH 

- Determine your current financial situation with regard to ISLeD which is income, savings, living expenses and debts. 

- Prepare a list of current assets and debt balances and amount spent for various items as a foundation for financial planning activities. 

2. COLLECT 

- Develop financial goals by periodically analyse your financial goals and values

  *differentiate your needs from your wants. 

- Specific financial goals are vital to plan your financial plan. 

3. ANALYZE 

- Develop alternative is crucial for making good decisions.

• continue the same course of action
• expand the current situation 
• change the situation 
• take a new course of actions

* not applicable to every situations

* be creative in making decisions 

4. DEVELOP 

- Evaluate alternatives of possible courses of action by considering your life situation, personal values and current economic conditions. 

- Consequences of choices. Opportunity cost is what you "trade-off" or what you give by making a choice. 

- Evaluating risk. This may be difficult, but identifying and evaluating risk can be consider by gather information based on your experience and experiences of others and to use financial planning information sources. 

- Financial planning information sources. Relevant information is compulsary in decision making process. Changing personal information and economic conditions will require you to continuously supplement update your knowledge. 

5. IMPLEMENT 

- Create and implement a financial action plan by choosing ways to achieve your goals. Be it your immediate or short term goals. The goals next in priority will come into focus. 

* you may need assistance from others.

6. REVIEW

- Financial planning is a dynamic process that does not end in particular action. Assess your financial decisions regularly. 

- Review your decision-making regularly will help you make priority adjustments that will bring your financial goals and activities in line with your current life situation.