For sure, managing your financial assets to the last dollar is important as we aim to reach financial goals that always include investments like buying a house, putting a business, or buying a new car or maybe enrolling yourself to various types of insurances.
However, in order to achieve these goals, it is important for us to identify and point out the priorities in our life because if we have financial and personal satisfaction, we are able to organize our financial assets a lot better through personal financial planning or with the help of a financial planning adviser.
Financial planning advisers or financial planners are the people that are the ones who do a comprehensive financial planning to enhance their client’s financial assets thus creating a more quality standard of living increase satisfactory levels through the reduction of uncertainty of their financial assets and putting away all the liabilities.
In this article, let us talk about the importance of managing your financial process planning from our friends in OnQFinancial – finances.
To start off, there are four main advantages that you can enjoy if you are able to manage your financial process planning.
-Enables you to obtain and secure financial resource for your future.
-Enable you to take full control of your financial assets to prevent you from having debts, bankruptcy, and also dependent on others for security
-Improving your decision-making skills financially.
-Gives you the freedom of getting forecast of your expenses and achieving your financial goals.
For an average person, one makes tons of decision every day and a lot of these decisions are just very common and simple to choose with minimal consequences while some needs time to understand and weigh-in because of its complexity which could have a longer effects personally or financially and to help you out on this circumstance, here is a six-step procedure for a perfect financial planning process.
1.ASSESS YOUR FINANCIAL STATUS – This is the first step where you have to determine your situation financially which includes income, savings, expenses, and debts by preparing a list of your current asset and debt balances and also the amounts that you spent from various products and services.
2.DETERMINE YOUR GOALS- You should regularly make an analysis of your financial assets and financial goals. This includes how you feel about money and why. This purpose is to differentiate your wants and needs.
3.CREATE OPTIONAL PLANS – You should develop alternative plans so that you can use it in crucial decisions. You should practice to create a good alternative option or action and continue on the same course of it before moving to your next alternative.
4.CREATING ALTERNATIVES- Alternatives should always be evaluated because your overall financial assets including your financial goals are at stake when taking this action. You should always determine the consequences that come with the alternative choices you make.
5.ESTABLISHING FINANCIAL PLANS- This is where you should start your financial planning by implementing it with an action plan where you have to ask for assistance for banks, financial planners to guide you on the right path.
6.REEVALUATION OF FINANCIAL PLANS- Since financial planning is considered a dynamic process, you should regularly create an assessment about it so that you can weigh-in the consequences over the achievements that you earned along the way.