Steps to determine your financial plans

Steps to Determine Your Financial Plans SULEKHA

DETERMINE CURRENT FINANCIAL SITUATION 

Check your current financial situation.

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Like in hand money, assets, past investments

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Calculate your last year loss and gain

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Yearly expenses such as monthly home, office, business.

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As an individual plan your tax and financial situation

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Business mans plan your employees salary and finding new investors, tax payments.

DEVELOP YOUR FINANCIAL GOAL 

Consider your current financial status according to this develop your financial goals

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Financial goals cannot be completed without tax problems.

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Tax is the first priority

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Investments, loans, property buying or selling, new business starting, medical issues.

EVALUATE ALTERNATIVES 

Consider and Asses is most important parts in to think about the alternatives.

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Consider: The life situation like your income and expenses.

Personal values are the things that you are believe and important of way you live and work.

Economic factors it deals with medical expenses and healthcare.

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Asses:

Risk assessment is most important for businesses. Musk aware of risk , because you are putting yourself, your employees, your customers and your organization in danger.(Cost, time, trouble and effort is most required not only financial cost) Time value of money(opportunity cost) it is used compare the two financial outcomes. Example the a dollar today is worth more than the same dollar at some point in the future.

CREATE AND IMPLEMENT YOUR FINANCIAL ACTION PLAN 

It depends upon the Four important factors such us.

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Savings, Tax withholding, Retirement, Investing

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Savings plays the most important role on financial planning. Insurance, Fixed deposit.

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Tax withholding also called as retention tax, it applies to employment income.

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Retirement – According to your retirement time period, plan your savings.

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Investment is an asset or an item which you earn more TVM in future. It is a future create wealth.

REVIEW AND REVISE THE FINANCIAL PLAN 

Review and revise the financial plan is mandatory to revise the amount and objective.

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It depends upon the below factors such us.

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Achievable goals

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Change in Income(Bonus)

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Expenses

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Number of dependents

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Change in tax status

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Any New goals

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Risk

Thank you