Financial planning points for you to know

Success depends upon the ability to modify and execute changes in a financial plan to accommodate the unexpected.

12:40 03 August 2013

Business plans rarely go exactly as they should, regardless of the amount of effort and forethought.

When you develop your financial plans, whether it is for business or personal finances, you should ensure that there is enough flexibility to compensate for obstacles. 

 

• Set two types of goals. When you plan, set a realistic goal that you feel will most certainly be accomplished and develop a “branch” of your financial plan around that easy goal. Also have a more ambitious goal and what you’d like to accomplish if you are able to meet that goal. If your actual results fall somewhere in the middle, you’ll still have a good idea of how to proceed. 

 

• Do enough research. Many times we feel our personal financial decisions shouldn’t take up a great deal of time. We expect to spend a lot of time on large purchases such as homes, but other purchases can sometimes be seen as less important. A few minutes of research can save you from making a poor purchase that ends up costing you double in the future if a product needs to be replaced. 

 

• Maintain a positive approach. When financial results don’t turn out as expected, it’s easy to become depressed or hopeless. If you approach situations by asking yourself how your goal can be accomplished, it will help you come up with solutions you might not have seen before. You’ll feel as though you are creating opportunities for success, even if you are taking an unplanned path.