The Secrets of Successful Financial Planning

 

With personal financial planning you can analyze the current economic situation, establish your goals to achieve and formulate plans that allow you to achieve those goals. Through financial planning you will achieve a better management of your personal finances, and an improvement in your economic situation.

Below, Genai Walker Macklin, Financial Advisor with Morgan Stanley, who has vast excellence in helping clients like you with your personalized investment and financial strategies, gives you the crucial steps so you can get started with personal financial planning.

Know your financial situation

The first step in personal financial planning is knowing your financial situation. For this, Genai Walker Macklin explains, the ideal is to make a personal financial statement:

Personal financial statement: Make a list of your income (salary, business, rent, etc.) and your expenses (food, education, utilities, etc.) and then subtract the total expenses from the total income and see the amount that remains.

Analyze your financial situation

With the information you got from your financial statement you have to analyze your personal financial situation, for example, your Personal Financial Statement may reflect that your income is not enough to cover your expenses or that you are spending a lot of money on "meals out or recreation".

Set financial goals

After analyzing your financial situation, do not worry, you have to take action to improve the situation. Now you have to set the financial goals. First, you have to make your general goals; these will serve as a guide to make specific goals. Some examples: Increase your income or reduce your debts or save more money. Then based on your general goals, you have to establish your specific goals, as these will help you measure your progress towards reaching your General Goals. Some examples: Reduce your monthly expenses by 30% for the next month or save 100 dollars per week or the equivalent of the currency of your country or cancel the total debts for the second quarter of the year.

Design your action plan

Once you have established your financial goals, the next step is to make the plans that will allow you to achieve those goals. For example,financial consultant Genai Walker Macklin adds, to increase your income, we could establish as plans to request a land increase, look for a new job, increase the sales of your business, etc. To reduce your expenses, you could make a plan to stop buying coffee, eat more often at home or go out to eat once a week, etc. To cancel your debts, you could establish a plan to cut credit cards, consolidate all your debts, allocate a percentage of your income for the cancellation of debts, etc.