Working on your Financial Action Plan
Are your personal finances in a mess and have no idea where to start? Are you thinking of reorganizing your financial plan? Or considering taking a long-term debt (mortgage, car loan, or college fees loan)? Or you want to know how you are financially progressing?
Before you make any major financial decision or changes you need to have a financial action plan. This action plan will not only help you dig out valuable personal financial information which you’ll need to make informed financial decisions but also provide a road map to achieving your identified financial objectives.
Your financial action plan will involve:
You need to know the current state of affairs in your personal finances. You need to find out how much you are earning, how you are spending it, how much debt you are carrying, how adequately you are prepared for an emergency or financial disaster, how much savings you have, whether you can pay for your current financial obligations comfortably before adding more debt or not, and many more.
To obtain that information, you will need to:
Before you can make your next move, you will need to think about what things are important to you and probably your family. The values you identify will help you to determine the direction you take with your personal finances.
You will need to sort out the things that are most important to you and your family and those that are sort of important and last those that aren’t very important. Then compare your list with your credit statement, spending receipts or checkbook. Find out if you are spending money on things that are really important to you and your family. If not, its time to make changes.
After deciding what’s important to you and your family, you need to define your financial goals centred on those important things.
Financial goals should identify what you want to do with your money within a given period of time. Goals give you direction. They give you a purpose for the way you spend your money. Think about the things you want your money to do for you now and in the future. Think about your short-term, intermediate, and long-term goals.
Your financial goals will need money to be realised. Therefore, you will need to set aside some money for each goal. The best way to do that is by putting up a spending plan (budget).
The spending plan should include money for:
Once in a while you will need to stop and find out if you on track or not. Monitoring your progress will be an ongoing process that you should always do to evaluate your successes or failures.
You will need to:
A Financial Action Plan Workbook for Managing your Personal Finances. It's a step by step action guide that will take through the activities required to work on your family or personal finances.
To get hold of this workbook, all you have to do is request your copy and it will be delivered your to email box ASAP. The good news is, it's FREE!
Just put down your request in the form below and i will email it you immediately.