Taking charge of your finances is important because you will have a much better idea of where your money is coming from and going to. And also how much money you should and should not spend.
Below, we have identified three key steps of financial planning:
1) Identify both your short-term and long-term needs and identifying your goals.
– Short term needs are immediate necessities that you need in your life.
– Long-term needs may be things like getting a health insurance policy or paying for household expenses.
– Goals will be things you aspire to have such as a house of your own and how well you would like to retire.
2) Evaluating the resources you currently have to meet your short-term and long-term needs and to achieve the goals you have set for yourself.
– Your resources may come in many forms such as your income, your savings and even bursaries or financial assistance schemes that you qualify for.
3) Managing and growing your resources.
– Manage your resources by drawing up a plan. Always have a spending budget to ensure you do not overspend on unnecessary items.
– Grow your resources through investments
– There are financial products available for you to help you manage and grow your resources so that you can meet your needs and your goals.
Get started today and make sure you plan ahead!