Having access to money is not enough to reach your financial goals – you need to have required knowledge of financial planning and management. This is why your financial plan is important. The interconnected steps which are heavily dependent on you, if followed strictly, will lead to your dream financial destination – Financial Wellbeing.
More often than not, people tend to be of the notion that their Financial Wellbeing is a function of their profits from business ventures or from paycheques, which is wrong. The state of Financial Wellbeing is a procedural activity and the success rate at each step of the ladder heavily depends on you. The steps include:
- Accessing your Financial data
- Writing the plan down: A Financial plan meets you where you are and asks you – where are you today and where do you intend to be in the future? It doesn’t matter who you are, everyone has a financial status.
- Making it practical: By taking notes every time you make a purchase or incur any expense, one takes full charge of his/her financial status. Consequently, practically noting-taking of expenses and income helps in 4 major ways:
- Understanding your spending pattern
- Grouping of purchases
- Identification of the frequency of spending
- Estimation of the money available for savings
The aforementioned steps clearly give an outlook on your stance in your Finances. As much as it is important to seek external counsel on prudent financial management, YOU ARETHE MOST IMPORTANT FACTOR.