A financial plan is exactly what it sounds like 鈥 a plan for your finances. Building a true financial plan typically involves evaluating your current financial situation (things like how much you make and how much you鈥檙e spending) and then developing a strategy for your future based on your personal goals and stage in life. Many people, especially those just beginning to focus on personal finance, find the idea of building a financial plan overwhelming. You might be thinking, 鈥淲here do I even begin? Do I even need a financial plan?鈥 The short answer is 鈥 yes. Building a financial plan makes it far easier to reach your short and long-term financial goals because you have clear and measurable targets to reach.
For example, if you鈥檙e looking to purchase a new house within the next two years, you can research how much you need to save each month for a down payment. Without understanding how much your dream home will cost and setting a time-bound goal, it would be next to impossible to build an appropriate savings strategy. What else should I know? If you decide to move forward with creating a financial plan (you should!) you may be surprised by how emotional the planning process can be at first.
After all, building a plan requires confronting every aspect of your financial life 鈥 even past decisions you may now regret. Don鈥檛 let these negative emotions deter you! By working with 大象传媒, we blend technology with financial experts that get to know you and your specific goals. We work them into a coherent and flexible document that adapts to your life over time.
