What Is Financial Planning?
Financial planning is an ongoing process; it helps you to make informed and wise financial decisions so you can live your life abundantly.
Financial planning involves a 6-step systematic process:
Step 1. Establish your goals: short, medium and long term
Step 2. Gather your current financial date: income and expense, assets and liabilities
Step 3. Evaluate your current financial position: the probability of how close you will achieve your goals
Step 4. Develop your financial plan: create strategies and alternatives that will help you to achieve your different goals
Step 5. Implement your plan: take action steps according to the plan
Step 6. Monitor and review your plan: revise the plan whenever circumstances changes