Who are the people who want to live in prosperity and freedom from debt and all financial problems? The answer is EVERYONE. Yes, everyone wants to live free from financial problems but the big question is how? In this article, I will describe some of the important stages in financial planning.
Determine financial goals
Steven R Covey, a popular author mentions the “7 Habits of Highly-effective and People”, that one of the habits of effective people is the “start from the end”. We must realize our ultimate goal of financial planning. If we do not have a final goal, then we would not have a strong motivation to live. If we have the ultimate goal, then we can arrange the necessary steps to achieve it.
What do you expect when you are not able to discipline in your plans? In doing everything you require a discipline if you want to succeed, not least in financial planning. You have to hold yourself to spend money for the sake of needs that are not planned in advance. If you can discipline your financial schedules then you can achieve maximum results in your financial planning.
Paying off debts
Remember that credit card debts has a great interest. You need to calculate the interest of credit card debt, because many people experienced financial fallout as a result of neglect in the calculation of the interest credit card debts.
Taking into account all the needs in a given period
Calculate your entire routine calculations within a certain time period, eg one month, three months, six months, or one year. You need to define your needs carefully and get rid of all the needs that are not too important.
By performing the steps above, you can more quickly to escape from all your financial problems.