A column by Margaret H. Johnson ACE, RQIC, a thought leader in the field of credit education and debt management. She offers 100% confidential and unbiased credit counseling and debt consolidation services. If you are a woman in debt, speak with Women and Money first. We specialize in helping women with their personal and business finance.
Five Principles of Financial Planning
1. Goals must be identified before they can be achieved.
For most of us, it is usual to have more goals than money; priorities must be attached to goals to reflect their importance in our lives.
2. Evaluation and understanding of present financial resources is basic to future planning.
Assemble all records of income and expenses for the past year, as well as a list of your assets and debts.
3. Balanced cash flows.
Refer back to your past spending to help you estimate the cost of your basic living expenses. Draw up a plan for a specific time period, perhaps one year, which includes a statement of your anticipated income and the way in which you plan to spend it; this plan is called a budget.
Use our personalized budget sheet!
4. Creating strategies for the implementation and control of the plan.
Plans are intended to direct some action and to manage changes as they occur.
5. Ongoing evaluation.
Effective financial management requires the ongoing evaluation of plans and implementation strategies to keep the plan relevant and effective.
All of us have personal goals; our financial goals are usually related to the personal goals that we have. Knowing where we want to go, when we want to get there, and how much it will cost are the fundamental building blocks of credit planning and goal setting.
Establishing financial goals is a very personal matter. Our credit counsellors will help you to identify goals and the priorities that you place on them. Once your goals and priorities are clear, our counsellors will assist you to learn the management process necessary to reach them.
Remember, if you are experiencing financial difficulties do not wait. Speak to a professional today!
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