Best Financial Plan in “7 Easy Steps”

Step 1: Goal Setting: Set S.M.A.R.T. financial goals for yourself.

S – Specific – Write down your goals clear n concise.

M – Measurable – Have the ability to track your progress.

A – Achievable – set challenging yet achievable goals.

R – Relevant – Set goals that are relevant to your overall life plan.

T – Timely – Set goals that have a target finish date attached.

Step 2: Control: Please remember income is not under your control, hence it is very important to have control over your expenses.

Pay Yourself Last:

Pay Yourself First:

Step 3: Contingency: Please make sure that you have an emergency fund which is equivalent to minimum six times of your monthly income.

Step 4: Insurance: One must have adequate insurance. Both health & life insurance is a must if you are an earning member of the family.                       

Step 5: Linking: Short Term Goals = Debt Instruments

Medium Term Goals = Mix of Debt + Equity Instruments

Long Term Goals = Equity Instruments

Step 6: Review: Make sure that you review your plan at the periodic time interval and rebalance if required.

Step 7: Guidance: Ask for appropriate Guidance from an Expert if you face difficulties.