What is a financial plan?
| myth: | You can't enjoy today and save for tomorrow. |
| truth: | A financial plan lets you balance enjoying today and tomorrow. It's about knowing where your money is going. |
What is a financial plan?
It's simply your list of short- and long-term goals that are important to you, with an outline of how you're going to use your money to achieve those goals.
A financial plan can help you to:
- Save money you need to realize your goals
- Protect what is most important to you
- Plan for retirement
- Leave something for your family
- Manage your taxes
Where to start?
You may have avoided thinking about your finances until now. But, you're already doing some basic planning if you...
- Set financial priorities each month.
- Pay your bills, work to lower your debt, and have a few dollars left each month.
The key is to balance your day-to-day activities with a longer-term financial plan that works toward your future goals and dreams. It's never too late or too early to start your plan.
Next step: Figure out where am I today?
