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How much
does it cost to buy that dream home? Can I afford the luxury
car? Can I take my family on an overseas vacation every year?
Do I have enough resources to send my children overseas for
their tertiary education? Would I have a comfortable retirement?
These are aspirations that many people share. Dreaming about
them will not make them come true. However, with some effort
and discipline, your financial dreams can become reality.
It is
unfortunate that so many of us treat our financial lives as
a series of uncoordinated and unorganised decisions, as this
diminishes the likelihood of us ever achieving our goals.
Getting your finances organised and coming up with a plan
allows you to see the bigger picture, and lets you know exactly
what you must do to attain your financial objectives. Financial
planning gives you an edge over people who don't know where
they want to go, and how they are going to get there.
The core
intention of financial planning is to help you plan your finances
in a systematic way so that you can achieve all that you want
out of life. It helps you identify and define your short-
and long-term goals, systematically evaluate your financial
resources and develop appropriate strategies to achieve your
desired goals. In other words, financial planning gives you
a roadmap to reach your desired destination.
The financial planning process can be broken down into 6 basic
steps:
· Defining financial goals
· Developing financial strategies and plans to achieve
goals
· Implementing plans and strategies
· Monitoring progress
· Evaluating results
· Revising plan if necessary
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