What are we going to do
3rd part of our financial plan – Working on our financial plan
Create and Implement Your Financial Plan
At this point, you have done the bulk of the work associated with creating a personal financial plan. So far you’ve looked at your current situation, set goals, identified alternative courses of action, and evaluated your options. Now it’s time to put all of the pieces together to create and implement your financial plan.
As you put together your financial plan, it’s important to look at the entire picture. Having identified options for reaching your goals and having weighed each strategy, it’s now easier to look at the cost of your goals in terms of your current situation. This can help you to prioritize your goals as you consider how much it will cost you to implement each one.
Finalizing your plan will require you to make decisions as to which goals to pursue and the best courses of action to take. All of this will have to be weighed in terms of your current situation and practical predictions for your future to maintain realistic and obtainable goals.
Once you’ve gone through the effort of creating your plan, discipline is paramount. After mapping your path to your goals, it is important that you follow that path. Be conscious about establishing actionable steps you can take to lead you to success when creating your plan. Having concrete steps to take will help you ensure you are doing what you need to do to stay on track to accomplish your goals.
Review and Revise your Plan
The final step in developing a personal financial plan is perhaps the most important. You may have done your due diligence at each step along the way and created a solid financial plan. However, one fact remains: life happens. For this reason, it is important to review your plan often and revise it as needed.
Reviewing your financial plan can help you to gauge your progress toward meeting your goals. Original strategies may not be having the expected results and may require adjustment to help you meet your goals.
Additionally, no matter how carefully you go through each of the steps to create your financial plan or how perfect the plan may be when conceived, unforeseen events will occur. Your financial situation will change from time to time. You may incur unplanned expenses or receive unplanned incomes. These events may require you to change the path you will follow to reach your goal.|
Your goals may also change. While owning a home may not be a priority now, it may be a goal you have later. As current goals wane from your list of priorities and you develop new goals, your plan will have to change to help lead you to your new objectives.
The fact is your life will change. Your financial plan will have to change too. Be faithful in reevaluating your plan from time to time to ensure your goals haven’t changed and that you are on pace to reach those goals.