Read on Twitter
5 Steps To Develop Your Financial Plan
//Thread//
//Thread//
Step 1: Define your financial objectives and goals
The goals and objectives will be the guide to the financial plan and should provide a roadmap for your financial future.
Goal:
Quantifiable and achievable
Clear and have a defined timeframe
Separate your needs from your wants
The goals and objectives will be the guide to the financial plan and should provide a roadmap for your financial future.
Goal:
Quantifiable and achievable
Clear and have a defined timeframe
Separate your needs from your wants
Step 2 – Gathering your financial and personal information
The financial planning process and its success will depend on the quality and clarity of the information.
This includes:
Income and expenditure
Assets and liabilities
Risk attitude, tolerance, and capacity
The financial planning process and its success will depend on the quality and clarity of the information.
This includes:
Income and expenditure
Assets and liabilities
Risk attitude, tolerance, and capacity
Step 3 – Analysing your financial and personal information
Analyze the information that you gathered during step 2
This includes:
Solvency Ratio
Savings Ratio
Liquidity Ratio
Debt Service Ratio
Analyze the information that you gathered during step 2
This includes:
Solvency Ratio
Savings Ratio
Liquidity Ratio
Debt Service Ratio
Step 4 – Development of the financial plan
Your financial plan will be developed based on the information gathered during step 2 & 3
This includes:
Net Worth Statement (a balance sheet)
Annual consolidated tax calculation
Annual cash flow report (displaying surplus or deficit)
Your financial plan will be developed based on the information gathered during step 2 & 3
This includes:
Net Worth Statement (a balance sheet)
Annual consolidated tax calculation
Annual cash flow report (displaying surplus or deficit)
Step 5: Implement and review your financial plan
Once the financial plan is developed then implement and review it.
This will include:
A new pension or investment strategy
Changing debt provider
Additional life or serious illness insurance
Income and expenditure adjustments
Once the financial plan is developed then implement and review it.
This will include:
A new pension or investment strategy
Changing debt provider
Additional life or serious illness insurance
Income and expenditure adjustments
If you liked this thread then please follow @DecipherWealth &
Please RT this thread
https://twitter.com/DecipherWealth/status/1381622902588596224?s=20
Please RT this thread
https://twitter.com/DecipherWealth/status/1381622902588596224?s=20
