Know your financial situation
The first step to conducting personal financial planning is to know your financial situation. For this, the ideal to make a personal financial statement:
Own economic status: Make a list of your income (salary, business, income, etc.) and your expenses (food, education, public services, etc.) and then subtract the total of expenditures from the total income and see the amount that remains..
Analyze your financial situation
With the information that you got from your financial state, you have to analyze your economic case; for example, your Financial Statement may reflect that your income is not enough to cover your expenses or that you are spending a lot of money on “meals out or recreation.”
Set financial objectives
After analyzing your economic situation, do not worry, you have to take action to improve the situation. Now you have to set financial goals. First, you have to make your general objectives; these will serve as a guide to make specific objectives.
Design your action plan
Once you have established your financial goals, the next step is to make the arrangements that will allow you to achieve those goals. For example, to increase your income, we could establish plans to request a land increase, look for a new job, increase sales of your business, etc.