This article will start a journey on how to manage money and learn about financial planning process. People do not create a financially settled overnight, they have a good financial planning and of course do it. So, you will also learn about it all his own to make your financial planning. What makes financial planning is important?
Financial planning is a process of goal setting, developing a plan to achieve it and execute as planned. Need a guide in order to handle everything related to money, whether it is spending, saving, debt and invetasi.
Although financial planning is big enough to give effect to the quality of life, but it is an easy thing to do. There are five steps that can be done :
Step 1 Set financial goals SMART
The first thing you can do is to distinguish between needs and desires.
You need it or want it? Let us be honest with ourselves, sometimes we "need" something that we really do not need. Needs are expenditures that must be undertaken to meet basic consumption. Meanwhile, desires are the things we want to get beyond the basic consumption that makes life more interesting and fun, but you can live without it if you like.
Make SMART Purpose. You have to realize that a goal is something that becomes a target. Something that you're right ideals, wanted to do or something that wants you to earn in the future. So that it leads to the targets. When that goal is achieved, resulting satisfaction that makes you want to achieve higher goals and greater. Now it is shown that setting clear objectives and focused is the key to success in life.
Step 2 Analyzing Information: Your money is Going Where?
The second step in the process of financial planning is knowing your financial position, where you know how much money went and how much money is spent or in saving.
Step 3 Create a Plan: Map your financial
What if the money should you set aside each week in Tasks 1-1 greater than the money that you receive? This is a situation that almost everyone experienced it. The solution is to analyze problems and make the best decision.
The financial plan consists of many decisions and make decisions related to money is a challenge because dealing with many aspects. For example your financial records. Many things can affect your decision, such as mood, the values that you hold, cultures, habits and opinions from friends and parents.
Step 4 Implementation Plan has been created: Manifest
Now you have to have a plan, the next step you have to do is how to implement it. Of course, knowing what you should do, then do so requires a challenge, namely discipline.
Step 5: Analyzing and Reviewing the Plan which has been made: Stay At the road that you have set
Planning has been created and implemented, you need to do a review to see if you still stay on track. The best thing you can do is review your plans and progress which you have done on a regular basis, every two weeks once or once a month. The more often you do a review, the sooner you can find out if you have been out of line.
The plan that you have created is not a rigid thing you can not change. You probably will meet with the things that are not expected or not fulfilled your financial ability to the unexpected, if it happens you should change your plans. It normally happens in life.
Financial planning is a process of goal setting, developing a plan to achieve it and execute as planned. Need a guide in order to handle everything related to money, whether it is spending, saving, debt and invetasi.
Although financial planning is big enough to give effect to the quality of life, but it is an easy thing to do. There are five steps that can be done :
Step 1 Set financial goals SMART
The first thing you can do is to distinguish between needs and desires.
You need it or want it? Let us be honest with ourselves, sometimes we "need" something that we really do not need. Needs are expenditures that must be undertaken to meet basic consumption. Meanwhile, desires are the things we want to get beyond the basic consumption that makes life more interesting and fun, but you can live without it if you like.
Make SMART Purpose. You have to realize that a goal is something that becomes a target. Something that you're right ideals, wanted to do or something that wants you to earn in the future. So that it leads to the targets. When that goal is achieved, resulting satisfaction that makes you want to achieve higher goals and greater. Now it is shown that setting clear objectives and focused is the key to success in life.
- Specific
- Measurable
- Attainable
- Realistic
- Time bound
Step 2 Analyzing Information: Your money is Going Where?
The second step in the process of financial planning is knowing your financial position, where you know how much money went and how much money is spent or in saving.
Step 3 Create a Plan: Map your financial
What if the money should you set aside each week in Tasks 1-1 greater than the money that you receive? This is a situation that almost everyone experienced it. The solution is to analyze problems and make the best decision.
The financial plan consists of many decisions and make decisions related to money is a challenge because dealing with many aspects. For example your financial records. Many things can affect your decision, such as mood, the values that you hold, cultures, habits and opinions from friends and parents.
Step 4 Implementation Plan has been created: Manifest
Now you have to have a plan, the next step you have to do is how to implement it. Of course, knowing what you should do, then do so requires a challenge, namely discipline.
Step 5: Analyzing and Reviewing the Plan which has been made: Stay At the road that you have set
Planning has been created and implemented, you need to do a review to see if you still stay on track. The best thing you can do is review your plans and progress which you have done on a regular basis, every two weeks once or once a month. The more often you do a review, the sooner you can find out if you have been out of line.
The plan that you have created is not a rigid thing you can not change. You probably will meet with the things that are not expected or not fulfilled your financial ability to the unexpected, if it happens you should change your plans. It normally happens in life.