Cash Flow Management
Assessment of Current Situation
Financial planning begins by assessing your current financial status. This includes understanding your income, expenses, assets, liabilities, and overall net worth.
Setting Financial Goals
Your goals drive the entire planning process. Consider both short-term objectives (such as buying a car or paying off debt) and long-term goals (like retirement or funding your child’s education). Make your goals specific, measurable, achievable, relevant, and time-bound (SMART).
Cash Flow Management
Effective cash flow management ensures that your income covers your expenses while allowing for savings and investments.
Budgeting, tracking expenses, and managing debt are essential components.