So, it’s a new year and all the usual new year’s resolutions are thrown into the fray, wanting to lose weight, keeping fit, saving more... a month later and nothing has changed. Wouldn’t it be great to take on a new year's resolution that you can actually achieve this year!? A positive, potentially life-changing resolution for you and your family.
Creating a Financial Plan this year may not sound like the most exciting thing to do, but it really can be created in six steps, and if followed will really be worth your while.
Six Steps to Financial Planning
Step 1 - Establish your Goals
We all have dreams that we want to achieve, from travelling, to owning a property, starting a business. Whatever your goals are, it is a great idea to sit down and really make a plan of how you are going to achieve your goals. Making a list of the things that you really want to do in the next year and beyond is a good starting point.
Step 2 - What are your assets and liabilities
Highlighting what assets you have in terms of savings, property, stocks and bonds, motor vehicles and personal valuables will give you a good starting point. Then look at your liabilities, such as debts, mortgages, loans and other owed money. You can then go onto the next step
Step 3 - Your current financial position
From your assets and liabilities list, you will be able to see how close you are to achieving your goals that you set out in step 1.
Step 4 - Your plan; how to achieve your goals
From this point, you can then start to look at how you can achieve your goals in a feasible time frame. Perhaps you will need to make some cutbacks on social activities, weekends away, additional cars?
Step 5 - Make the changes
Putting your changes in place is the next step. Making small adjustments to the way to spend your money can really make an impact on your financial situation over time.
Step 6 - Monitor, review & adjust
Continue with your changes and each month review your finances, in line with your goals. If your planning appears to be working, continue. You may need to adjust your expectations, or changes along the way, but perseverance will in the end pay off.
Doing this alongside a more detailed Monthly Budget will put you in a good position to have a better overview of your finances and ultimately allow you to make the changes you need to in order to achieve your goals.
If you would like more advice on financial planning, our trusted and knowledgeable advisors at Cotswold Financial Planning are here to assist you. Contact us on 01608 651608 or via our enquiry form and we will be happy to discuss your requirements.