8 Steps to Creating a Smart Financial Plan
- Step 1: Discover Where Your Money Goes Now.
- Step 2: Set Financial Goals.
- Step 3: Prepare For The Unexpected With Insurance.
- Step 4: Keep an Eye on Your Credit.
- Step 5: Start Saving.
- Step 6: Begin to Build a Portfolio.
- Step 7: Keep Track of Your Plan.
- Step 8: Plan Your Exit Strategies.
So we asked financial planning pros from across Canada for their advice on how to plan a family budget, stay motivated and reach your financial goals.
- STEP 1: Know what you spend. You can’t create a budget until you know where your money is going.
- STEP 2: Set goals.
- STEP 3: Create the budget.
- STEP 4: Monitor your progress.
- Start with a sales forecast. Set up a spreadsheet projecting your sales over the course of three years.
- Create an expenses budget.
- Develop a cash-flow statement.
- Income projections.
- Deal with assets and liabilities.
- Breakeven analysis.
A budget is simply a plan for how you’ll spend your money each month. To make your first budget in college, start by making a list of your fixed expenses, such as rent, tuition, books, car payments, utilities and food. Next, make a list of your discretionary expenses such as clothing and entertainment.
How do I create a financial plan?
Create Your Own Financial Plan
- Step 1: Identify your goals. Sit down with your spouse and have a frank conversation about your short-and-long-term goals.
- Step 3: Check your cash flow.
- Step 4: Match your goals to your spending.
- Step 6: Reduce your taxes.
- Step 7: Create an investing policy.
- Step 8: Create or update your will.
- Final thoughts.
What are the six steps in developing a financial plan?
There are six steps to the financial planning process:
- Establishing and defining the client-planner relationship.
- Gathering client data including goals.
- Analyzing and evaluating the client’s current financial status.
- Developing and presenting recommendations and/or alternatives.
- Implementing the recommendations.
What goes into a financial plan?
Financial planning includes every aspect of your finances. Your financial planFinancial plan Your financial plan should cover every aspect of your finances: saving and investing, paying down debt, insurance, taxes, retirement planning and estate planning.+ read full definition should cover: saving and investing.
Photo in the article by “SAP”