Starting Your Financial Planning Journey: Step-by-Step Guide

Start your financial planning with our step-by-step guide. Learn essential strategies and tips to achieve your goals and secure your financial future. Starts today!

The most common question for most people is: where do I start in organizing my money? If you feel that something is disorganized and can be improved, and often find yourself lost about where to begin, this article will help you do just that.

Many people don't keep track of their money, have no control over their spending, and go through month after month without knowing where their money goes. They are unaware of their monthly expenses, don't know how much they need to live, and make purchases without any financial planning. Therefore, we will now present four steps for you to start organizing your money.

Starting Your Financial Planning Journey - Step 1

The first fundamental step is to understand your spending pattern. Most people don't know it because they often deceive themselves, thinking they spend more on necessities like food. However, when you analyze it, you'll find that you're spending more on unnecessary items.

Track your spending. Only by doing this, you will truly understand where your money is going, and you'll gain visibility into both your fixed and variable expenses. You need to be able to visualize all your income and expenses to determine whether the lifestyle you are currently living is suitable for you at this moment or not.

Starting Your Financial Planning Journey - Step 2

Step number two is making adjustments, which is where you start taking action based on your spending tracking.

These adjustments may involve starting to spend a little less, so cutting expenses and saving can make sense. It might be necessary for a certain period or due to debt situations. Ideally, you should adjust your budget so that you can spend less than you earn.

Starting Your Financial Planning Journey - Step 3

Set goals and define objectives because if you don't have a goal, any path will do. Without an objective, you can't say (no) to the things that will be necessary along your journey toward a more organized life, and achieving your goals will become much more challenging.

It will be much more challenging without a goal and a defined objective. How many times have you set ambitious goals for the end of the year, the beginning of the next year, or promised to transform your financial life, and abandoned them all?

Most likely because your goals weren't well-written, as a well-defined goal, a thoroughly planned objective with specificity, directs you and helps you maintain a much stronger focus on what you want.

For example, let's say you've decided to limit your clothing expenses. How many times will you test yourself and have to say (no) to that beloved brand of clothing? Imagine having to say these (no's) for no apparent reason. But now, with well-defined goals and objectives, when you want to achieve a dream like a vacation or buying a house, saying (no) takes on a very different weight when you know exactly what you want.

Your plan needs to be well laid out and requires daily choices, prioritizing what you want to spend on. We can achieve anything as long as we are willing to give up certain things and understand the power of the long term.

Starting Your Financial Planning Journey - Step 4

Step number four is execution, meaning it's about doing what needs to be done. If you already know where your money is going, can visualize all your expenses and income, have made the necessary adjustments, and have set your goals and objectives, you are now prepared to carry out what needs to be done.

You are solely responsible for what you do and what you choose not to do, and no one can do it for you. Therefore, be self-responsible for your actions, your goals, and your objectives, so you can live the life you want to have.

Only you can make a difference, and discipline is the ability to execute what we set out to do. So, do what needs to be done, take all the points you've learned in this content, and apply them to your own life. That's the way to make a change. It may not always be easy, but it can be simple.