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Basic Things To Know While Making A Financial Plan
As seen throughout the earlier units, the following things should be known and evaluated to make an efficient financial plan-
- Proper budgeting techniques
- Setting proper financial goals
- Proximity and priority of the goals
- Quantitative values of the goals
Let us understand how all these things come together to give us a foundation of our financial plan through an example.
Suppose, Mr. Amit decides to begin financial planning. He follows the guidelines given previously in this chapter, and understands his goals by tabulating them like this. Now he will start investing towards these goals based on the priorities he has evaluated and understood.
Tabulating your goals like this will help you stay clear on what you have to keep in mind while making your financial plan.
