In life, you must always have a plan.
There’s a saying that if you FAIL to PLAN, then you PLAN to FAIL.
If you do not even care to plan, you will then be automatically be part of other people’s plan.
In todays’ context, I will be touching on creating your own financial plan. There are 6 Steps altogether, to build your personal financial plan. 🙂
Step 1- Set Goals and Objectives
What exactly do you want? You want to accumulate money for retirement? You want to accumulate money for your child’s education?
…or simply you want to leave some money for your beloved spouse and children, in case you go to heaven the next day?
Identify and segregate your goals, into SHORT TERM goals, MEDIUM TERM goals and LONG TERM goals! 🙂
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Step 2- Gather Data
Before you go to war, you need to know what weapons, do you have… the number of soldiers available and more relevant information.
Similarly,when you want to devise your own personal financial plan, you need to take stock of yourself financially. Where are you now?
Create your own net worth statement and cashflow statement.
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Step 3- Analyse and find solutions
So…you have consolidate your financial data into relevant structures like networth statement and cashflow statement? It is time for you to interpret them.
Benchmark it to your goals. How far off you are from your goals? What are the solutions and alternatives involved? 🙂
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Step 4- Recommendations
Out of the solutions and alternatives, CHOOSE the best one, most suitable for you. If you are super risk averse, investing in funds, will not be an option for you. You will love super safe, guaranteed endowment plans.
Relatively, if you are the gung ho and dare to take calculated risks, investing in funds will APPEAL to you. You may view, the returns from endowment plans as too little.
CHOOSE the best options for yourself.
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Step 5- Implementing Strategies
After deciding, which strategies suit you most, it is time to IMPLEMENT them.
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Step 6- Follow Up and Annual Reviews.
Every year, there will be changes in your family. Perhaps, if you are single, you may be getting married. If you are married, you may now have a newborn child. If you are working, you may now be enjoying a pay raise.
So, it is therefore, crucial for you to do an annualized review on your financial plan. What needs to be changed? What needs to be removed or add on?
Btw, if you need any help in the construction of your financial plan, you can always call me, Helmi Hakim at 96520134, for me to assist you in the creation and development of your financial plan. See ya! 🙂 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
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