Comprehensive financial planning is an ongoing process that helps you make smart decisions about your money. It involves creating a budget, setting goals, and investing for the future. A comprehensive financial plan is created by taking into account a number of factors, including income, expenses, assets, and liabilities. Comprehensive financial planning can help you achieve your financial goals and to build a solid foundation for your future.
How is a comprehensive financial plan created?
There are a number of steps that go into creating a comprehensive financial plan, including:
Assess your current financial situation: This includes a review of your income, expenses, assets, and liabilities. It's important to have a clear picture of where you are financially so that you can determine what steps need to be taken to move forward to meet your goals.
Identify your goals: Goals are ambitious targets we set and we use money to achieve them. Retirement, education, purchases and “bucket list” items are examples of goals. It's important to be clear about your goals so that you can create a plan to work toward them.
Develop strategies to achieve the goals: These may involve considering different options for investing or saving, and creating a timeline for meeting your goals.
Implement the plan: This can include making specific changes to your financial situation, such as increasing savings or reducing expenses, in order to meet your goals over time.
