PLAN FIRST , INVEST LATER !

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Determining your current financial situation.

 In this first step of the financial planning process, you will determine your current financial situation with regard to income, savings, living expenses, and debts. Preparing a list of current asset and debt balances and amounts spent for various items gives you a foundation for financial planning activities. 

Developing financial goals.

 You should periodically analyze your financial values and goals. This involves identifying how you feel about money and why you feel that way. The purpose of this analysis is to differentiate your needs from your wants. 

Identifying alternative courses of action.

 Developing alternatives is crucial for making good decisions. Although many factors will influence the available alternatives, possible courses of action usually fall into these categories, 

Not all of these categories will apply to every decision situation; however, they do represent possible courses of action.

Evaluating alternatives.

 You need to evaluate possible courses of action, taking into consideration your life situation, personal values, and current economic conditions,  

Decision making will be an ongoing part of your personal and financial situation. Thus, you will need to consider the lost opportunities that will result from your decisions.

Creating and implementing a financial action plan

 In this step of the financial planning process, you develop an action plan. This requires choosing ways to achieve your goals. As you achieve your immediate or short-term goals, the goals next in priority will come into focus.  For example, you may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds. 

Reevaluating and revising the plan

 For example, you may use the services of an insurance agent to purchase property insurance or the services of an investment broker to purchase stocks, bonds, or mutual funds. HAPPY INVESTING