We hope that you are taking good care of your finances with manageME7. Most of the time we continue adhering to money management without realizing our future financial needs. Also, we do not emphasize much on various ways to achieve the financial goals and evaluate the planning criteria from time-to-time. Therefore, for making a sound proof plan, we had come up with a financial model in this particular edition, which would help you plan your expenses and provide you an optimum way to achieve your financial goals.
With the help of financial planning model, you will be able to determine your financial troubles, look for the best strategies to achieve your financial goals and monitor the implemented strategy at frequent intervals. You may refer the following steps to achieve your financial goals which works as your financial planning model:
1. Identify your financial goals & objectives: The first step in the financial planning model is realization of your financial goals. To make it more simple for you, categorize your financial objectives into short term and long term goals. For example - saving money for buying a house can be a long term goal and a short term goal is can be your planning for a trip in the year end. If you have set clear financial objectives in front of you, it becomes easier for you to achieve them.
2. Identify the hurdles in achieving the financial goals: The next step in the model is to identify the hurdles you face in achieving your financial goals. For example, a sudden increase in the rate of interest may compel you to pay more on monthly EMIs. You need to consider every factor that acts as a boulder in achieving your financial goals.
3. Look for all possible alternatives: The third step is to look for various remedies which can help you achieve your financial goals with minimum effort in less time. For instance - for buying a home, you may stick to the monthly saving rule or can choose one among a number of credit giving companies for the application of home loan. Accordingly, you can look for various other alternatives that can help you in achieving your financial goals.
4. Choose the best alternative: Based upon the assessment of previous steps, you need to choose one optimum alternative. This step is very crucial because it is the final strategy which will be helping you in accomplishing your financial goals. We should dig all pros and cons of every alternative we have been provided before actually finalizing the best solution, as this would help us to achieve our financial goals more effectively.
5. Implement the selected alternative: In this step, simply you need to implement the best remedy to achieve your financial goals and adhere to it on regular basis.
6. Monitor and Evaluate the results: This is the last and final step that should never be ignored by you. You need to decide the time lines for evaluating the performance of the alternatives you have implemented so far . This would help you to know whether you are following the right path or moving towards the wrong direction. If the performance is good and you have achieved your goal, you can plan for your next financial goals wherein you will need to follow the same steps again, right from the beginning of the financial planning model. Or else, if you have not achieved the desired result by implementing the best solutions, then you need to look for the loopholes. When you come to know that you can not reap the benefits from the implemented alternatives, you need to follow step 3 again and look for other alternatives which can help you in achieving your financial goals.