Living comfortably, access to a good education for yourself or your children, a car and maybe even a holiday are all things that we want and deserve. But these things cost money, lots of it. And without a proper financial plan in place, it’s going to be very hard to achieve these financial life goals.
The steps of financial planning
The first step is to think about your life goals. These can be split into short- and long-term goals.
A short-term goal could be saving for a deposit for a flat, house or a car. It could be saving for that dream wedding or holiday, or even paying off your credit card debt. Short-term goals are things you want to accomplish soon, usually within the next 5 years.
Long-term goals require time and planning. They aren’t something you can do this month or even this year. Long-term goals usually take more than 5 years to achieve. Examples of long-term goals are saving for your retirement and/or your child’s university fees.