6 Steps of Financial Planning

step 5: create and use your financial plan of action

...

step 3: Identify Alternative Courses of Action

continue the same course of action expand your current situation change the current situation take a new course of action

step 2: develop your financial goals

determine your needs and wants. you must know what to do with your money such as saving or spending it.

step 1: determine your current financial situation

make a list of items relating to your finances: savings, monthly income, monthly expenses, debts

step 6: review and revise plan

revise it every year as your life and financial situation changes

step 4: evaluate your alternatives

the internet, financial institutions and specialists, and media sources can help you make financial decisions. understand the opportunity costs of your decisions. There is interest rate risk, inflation risk, personal risk, income risk, and liquidity risk.