{"id":649,"date":"2022-09-05T11:43:28","date_gmt":"2022-09-05T10:43:28","guid":{"rendered":"https:\/\/www.redstareducation.co.uk\/blog\/?p=649"},"modified":"2022-09-05T11:43:28","modified_gmt":"2022-09-05T10:43:28","slug":"why-should-you-make-a-financial-plan","status":"publish","type":"post","link":"https:\/\/www.redstareducation.co.uk\/blog\/why-should-you-make-a-financial-plan\/","title":{"rendered":"Why should you make a financial plan?"},"content":{"rendered":"

Creating a financial plan allows you to properly evaluate your current financial situation and figure out how to reach your future goals. Let\u2019s have a look at why.<\/p>\n

First things first, what IS financial planning?<\/h2>\n

Financial planning is when you look at your current financial situation and lay out clear long-term financial goals you want to meet. You then establish a strategic plan in order to meet said goals.<\/p>\n

Now and the Future<\/h2>\n

The process alone of establishing a financial plan is helpful. This is because it allows you to properly evaluate how you are money-wise right now.<\/p>\n

It also allows the process of introspection to take place, wherein you\u2019re examining what you want to see in your future.<\/p>\n

Goals vs Aims<\/h2>\n

Goals are your end desire. Aims are the way you will achieve this.<\/p>\n

Example:<\/h6>\n

My goal is to buy a new car in 3 years. My dream car is worth \u00a37,000, including road tax and insurance, taking into account inflation<\/p>\n

Therefore, I aim to save \u00a3195 a month in order to meet this goal<\/p>\n

Other financial goals may include:<\/h2>\n