Explain how to develop a financial plan
Answer:
Anyone who desired financial security, they must have good financial plan. Here I have mentioned steps to develop good financial plan to achieve success.
(1) First determine your current financial situation
In this step you should determine determine your most current financial position with regard to, savings income, debts and living expenses.
(2) developing financial goals
Second step is periodically analyzation of the financial values & goals. In this step you should identifying that how do you feel about money & why feel in that way
(3) identifying alternative courses of action
In this step you should determine possible courses of action that are available alternative. You should think
- Expand current situation
- Continue with the same course of action.
- . Take the new action
- Change current situation.
(4) evaluating alternatives
After frequent period of interval you should evaluate the action, for this you should take in to into consideration , personal values ,your life situation, & current economic situation
(5) creating and implementing a financial action plan, and
In the fifth step of the financial plan, you should develop action plan. It requires choosing the ways for achieving the goals. After achieving immediate goals, then decide what next in priority will come within the focus. For implementing financial plan, you should need help from others.
example : insurance agent services for purchasing property insurance
investment broker services for purchasing mutual funds ,stocks, or bonds
(6) reevaluating and revising the plan.
This process is dynamic one that does not end . You should frequently assess financial decisions. Changing personal, economic and social factors for frequent assessments. In the end you will bring financial goals & activities with best current life situation.
