5 Tips To Improve Your Financial Planning

 

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To improve your financial health you’ve first got to improve your financial planning. You might find organizing your finances a bit of a headache, but it doesn’t have to be that way. There are plenty of simple ways you can get your finances in order, including these five simple tips.

1 . Determine your financial goals

To improve your financial planning, the first step is to determine your financial goals and objectives. Your goals might relate to improving your earnings potential; reducing your debts; boosting your savings; or securing your financial future. It can be helpful to follow the SMART framework to ensure that your goals are specific, measurable, achievable, relevant and time bound. With the right goals in place it’s easier to work towards financial stability.

2. Collect the right info

Before you create a solid plan first you need to gather all of your financial information together. You’ll need to collect information from all your accounts, plus information about any loans, debts and investments. It’s important to capture all relevant info that relates to your finances. You’ll need data on your expenditure and income, and your liabilities and assets. Only with a clear picture of your finances can you create a financial plan that works for you.

3. Make an analysis

Using the information you’ve collected, you can now make an analysis that will help you work towards your goals. Identify which areas you need to focus on to achieve your aims; determine where your financial weaknesses are; and decide how you can improve them. If you work with a financial advisor during this stage, they can help you to create and analyze your balance sheet, figure out your consolidated tax calculations, and create an annual cash flow report.

4. Use financial tools

To improve your financial planning processes there are plenty of tools which can help you. For a few starting options, you may want to consider the following:

Clarity Money: If you’re looking to improve your budget and reach your financial goals, Clarity Money is a great tool. With this application, tracking and managing your money becomes simple. You can access AI powered budgeting suggestions and even get your credit score.

Spending Tracker: With this personal finance application it’s simple to design a budget that works for you. Here you can log income, export transactions, monitor spending history, and so much more. Spending Tracker provides reports and interactive charts, so you can gain a clear picture of your spending habits. Other budgeting app options include Wally, Mint or YNAB.

5. Consider the future 

When you are planning your finances it’s important to consider your future stability. There are several areas that you may wish to focus on including life insurance, retirement options, an emergency fund, and debt reduction. Before you speak to a life insurance provider ensure that you prepare yourself. You can do this by reading about the questions life insurance companies ask, and then gathering the appropriate information.