Many of us just spend without thinking about our current financial status. Sometime, we may just feel regret when we spend a great amount of money after buying something that we really not needed.
Before we use our money wisely, we need to follow several steps as below as a way to manage our money.
a. Understand your financial status
This will let you understand your assets and your liabilities. With good understanding, it help you to set your goal clearly.
b. Clearly set your goal/objective
Set the goal. With a goal, it will drive you to meet the goal. For an example, you find that you have debt, you set your goal to paying back the debt within 2 years. The goal can be in short term or long term. For long term wise, it may involve your retirement, your children education fees and so on.
c. Set the plan and strategy
What is the strategy and plan in order for you to achieve the goals you set.
d. Find the correct tool for money growth
Due to inflation, the money will depreciate if we don't plan it properly. The tools here is mean the investment. This is like how you invest, either put into bank account, mutual funds or stock market. For the protection wise, you need to chose the correct insurance plans to protect you and your family.
e. Adjust of the plan according to the current situation to meet the goal
Once plan and planning is set, you many need to check the status for every six months to make sure that it all in control. Soemtimes, some unexpected issue may arise and you may need to readjust your plan accordingly in order to achieve the goal. Hence, review, adjust and readapt the planning and strategy is important.
Before we use our money wisely, we need to follow several steps as below as a way to manage our money.
a. Understand your financial status
This will let you understand your assets and your liabilities. With good understanding, it help you to set your goal clearly.
b. Clearly set your goal/objective
Set the goal. With a goal, it will drive you to meet the goal. For an example, you find that you have debt, you set your goal to paying back the debt within 2 years. The goal can be in short term or long term. For long term wise, it may involve your retirement, your children education fees and so on.
c. Set the plan and strategy
What is the strategy and plan in order for you to achieve the goals you set.
d. Find the correct tool for money growth
Due to inflation, the money will depreciate if we don't plan it properly. The tools here is mean the investment. This is like how you invest, either put into bank account, mutual funds or stock market. For the protection wise, you need to chose the correct insurance plans to protect you and your family.
e. Adjust of the plan according to the current situation to meet the goal
Once plan and planning is set, you many need to check the status for every six months to make sure that it all in control. Soemtimes, some unexpected issue may arise and you may need to readjust your plan accordingly in order to achieve the goal. Hence, review, adjust and readapt the planning and strategy is important.
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