Financial planning includes all aspects of your finances. Your Financial should include the following:
- your savings and your investments ;
- the repayment of your debts ;
- your insurance ;
- the tax ;
- the retirement planning ;
- the planning of your estate .
Five reasons to establish a financial plan
A financial plan helps you to:
- Prioritize your financial goals – For example, if you buy a new car now, will you have enough savings to buy a house or go back to school later? Which of your goals is most important to you?
- Saving to reach your goals – You may find it easier to save money if you know what your savings will be for.
- Focus on your situation as a whole – Your financial plan includes various elements. Among other things, it allows you to monitor your expenses , manage your investments and reduce your taxes .
- Organize Your Finances – A financial plan can help you balance your expenses and savings, track expenses and manage your debts.
- Be less concerned about money matters – With your financial plan, you will know your current situation and know how to achieve your goals.
Use CNN Money’s priority calculator , which will help you rank your goals according to the importance you place on them.
A financial plan can help you:
- prioritize your objectives;
- focus on your situation as a whole
- organize your finances;
- be less concerned about money issues.