6 Steps To Start Your Financial Planning Right
6 December 2022 | 4 mins read
Financial planning is a vast and confusing topic for many. The good news? You don’t have to be overwhelmed by the process anymore! There are 6 steps here for those starting their own financial plan or need some direction understanding what they should do next before making any decision.
List what you have
If you are an employed working adult, you are rarely starting from ground zero. Knowing which financial protection you might be part of is the first step.
Decide what you want
Start by determining your current financial situation and how much coverage you need for yourself and your dependents. When deciding on the type of protection, weigh the pros and cons of each option.
Identify & Quantify Gaps (if any)
Knowing the extend of your coverage and regularly evaluating your policies can help to ensure maximal protection for you in the event of a financial disaster, so it’s worth your time and effort!
Identify & Reallocate or Remove Excess Provisions (if any)
Taking a proactive approach to analyze and adjust extra expenditures allows for better allocation for financial goals of an individual or family, and removing unnecessary stress.
Budget Your Spendings
Budgeting allows you to make more conscious decisions about how you’re going to spend your money. It also helps ensure that you don’t wind up going over your financial goals.
Allocate Surplus To Fill Gaps (refer to #3)
Allocating a portion of your extra budget to fill coverage gaps is an excellent way to ensure that financial disasters don’t take us by surprise.
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Knowing where to start
Starting out on a clean slate with financial planning can be a daunting one, but there is always somewhere to start if you feel hesitant to speak with a financial consultant before doing any research. More often than not, you would already have some form of insurance protection before you know it. Arm yourself with the right information and start your financial planning process right!
If you are ready to kick start your financial planning review, reach out to us for a conversation.
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