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  • Writer's picturePaul

The key to a good financial plan

Updated: Dec 1, 2019

A financial plan is a comprehensive document that is in essence a road map to get you to financial freedom. It is a combination of your financial and personal circumstances, coupled with individualised strategies to get you to where you want to be.

At some point in our lives we have all sat down and tried to attempt a rough version of a financial plan, which generally involves us listing our assets and liabilities, doing up spreadsheets on our income and expenses and thinking of glamourous investments. While not a bad start and well intentioned, we generally end up a few weeks down the track and are already back into old habits or worse making bad financial decisions.

Ever wondered why this is? The reason is simple, we never actually take the time to sit down and really think about what we want to achieve. Our goals and objectives are the foundation of a financial plan, but for some reason are often the most overlooked.

A successful financial plan starts with the question, what do I want? The key to this question being I, as your goals and objectives should be individualised to you, not what your friends think you should want, or what your neighbours want.

So, take some time to sit in a quit room with your thoughts, or around the dinner table with your partner and define what you actually want from your finances, what you want to achieve and why.

Remember to be specific with your goals, whether they be long term like retirement or small immediate goals like paying off that annoying credit card.

By taking some time out to really understand what you want in life, you will have a solid foundation to start a successful financial plan.

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