Financial planning

 'Financial Plan'

A financial plan is a comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict the flow of cash in future, value of assets and withdrawal plans. Most individuals work in conjunction with a financial planner and use current net worth, tax liabilities, allocation of assets, and future retirement and estate plans in developing financial plans. These metrics are used along with estimates of asset growth to determine if a person's financial goals can be met in the future., or what steps need to be taken to ensure that they are.

Financial planning helps you to determine how you are controlling your money.These plans can help you create a strategy for paying off all of your debt while saving a huge amount at the same time.

 When building and preparing for your financial planning ,these following steps might help you to build your financial plan:

 1:determination of your path i.e;how you are controlling your money:

This is the first step of your financial planning.In this step you should prepare a list that enlists your short-term, mid-term, and long-term goals, and it should be realistic and specific. Short term goals are within half a year or one year, while mid-term goals are between three to six years and long-term goals are greater than six or ten years from now.

for this step, it is must for you to know how much you need to save and how long will it take,then set your monthly goal.

 2: Set your monthly goal.

Once you know how much you need to save and how long will it take to save that money, you can set a monthly savings goal. Then set your goal to your monthly income and savings. If you find that you can’t save as much as your goal requires, take a look at your spending and see if you could make adjustments. If that seems much harder to you,then you may add more time to your goal completion .

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