Financial Planning for Beginners [8 Steps]

Financial Planning for Beginners [8 Steps]

Going to talk about setting up your financial plan so you can get your strategies and tips on becoming financially free at a young age make on when i post new videos and don’t forget to like and share this video and working for your money all the time make sure and click the link below this in the simplest way possible and the most profitable way possible okay so setting up

Your financial plan the first step is to identify your goals i talk to get there you’re not going to get there and you don’t yeah if you don’t money or maybe just floating along not really making any progress so that’s the goals are and i also like to include my goals in my budget or my spending plan goals whether that is saving for a down payment on a house or for purchasing

A europe wherever and that could be one of know what you’re working toward and it could also be financial freedom that’s of put my big trips on hold for right now i’ve done a lot of traveling in the and that’s my that’s my financial goal okay so once you have your financial is so this is step number two you want to figure out what your net worth is and liabilities so all

Of your assets would be if you own a home or a car maybe you things that you could sell and get money for those would be your assets and it you want to include how much you know your house is worth and how much your that you have in your savings or your checking and in your investment accounts to put those all in a spreadsheet is a great way to do it and just list them

Liabilities are and this is everything that you owe so assets are what you own owe money on your house and like your mortgage then this would whatever the amount is on your car loan that would be another liability any any loan debt anything that you oh oh on that would be your liability and once that will be your net worth so this is essentially how much money you’re worth

Retire whatever number you’re working towards for your net worth and so that’s step is figuring out your cash flow so how much income you have coming in and that we can actually work toward our financial goals so you want to figure phone bill or your house payment or rent insurance things like that and so you how much money you have coming in and how much you have going

Out and when you is coming in and you can do that in a spreadsheet and you can also use an interested in using personal capital you can link all of your financial it will show you all of your assets and all of your liabilities and all of your it is super handy i love using it and i also use a spreadsheet as well so i do capital i will leaving a referral link below and you

Can get a $20 amazon gift you have that positive cash flow so you can put extra toward your financial to your spending you want to match your your spending to your priorities to those goals for example if you take a look at all of your expenses and maybe go on vacation within the next year so you’re not really putting a lot of money your money on eating out so you really

Need to start to focus and say okay what financial goal or do i need to change some of my spending habits do i need to maybe going to the movies a lot or just you know not really focusing in on your friends are doing and yeah you really need to focus in on matching your reach your goals because that’s what you’re working toward that’s what you insurance and i find this

One i mean it’s like it’s a little interesting but there’s no one you know that i i don’t have a a job per se that is helping me and just through the insurance marketplace but i have insurance because astronomical amount of money just because i didn’t feel like having really high deductible insurance so that i can use an hsa account a health expenses are very very low and

But you could be in a different situation where have the right insurance for your needs and that’s just you know one other thing stuck with an astronomical health bill medical bill because that will not help insurance and this can also include your other insurances like your home different you can have different extremely different prices with seeing if you can get a lower

Insurance rate because you never know and if could be paying a lot higher rate so that is the fifth step is to review your taxes we pay a lot in taxes so you want to look for different ways that you can and you know you can do that one way is to start your own business because you just want to take a look and see how can i lower my taxes and maybe that has to traditional

Ira things like that but that is step number six looking at ways investing policy and i really like this one because once you have that policy in doing because we want to be making our money work for s right but you don’t create your own investing policy or investing strategy it makes it a lot is what i do and this is what i don’t do and when you kind of break it down like

Not because if it doesn’t i’m not going to invest in it if it does great i’m be something as simple as i only invest in index funds or i only invest in combination i invest in stocks and in real estate and for real estate i only you want to just figure out what your strategy is and start investing your won’t have to think oh should i do this investment or should i not you’ll

Just homework it looks good let’s do it or no it doesn’t i’m gonna pass and you’ll trust in place something that will protect all of these assets that you whoever it might be if something were to happen to you so you want to make sure just never know and it’s better to be safe than sorry right you just want to care of so you want to get that set up as well and these are

The eight steps to these steps i would love to know or if you are going to now set up your you are going to complete your financial plan if you haven’t already and are really serious about taking care of your finances video to see how i have been able to make my money work for me and create a easy so click that link below for that information don’t forget to subscribe to

For you to young age and don’t forget to like and share this video with someone

Transcribed from video
Financial Planning for Beginners [8 Steps] By Tiffany Thomas Your Wealth Mentor