Financial planning includes every aspect of your finances. Your financial plan should cover:
5 reasons to have a plan
- Prioritize your financial goals – For example, if you buy a new car now, will you have enough savings later to buy a house or go back to school? Which of these goals is most important to you?
- Save money to reach your goals – You may find it easier to save when you know what you’re saving for.
- Focus on the bigger picture – Your financial plan considers everything from watching your spending to managing your investments to minimizing your taxes.
- Organize your finances – A financial plan can help you balance spending and saving, keep track of expenses and manage debt.
- Worry less about money – With a plan, you’ll know where you are today and how to get to where you want to go.
If you have conflicting goals, a financial plan can help you prioritize them. This
Prioritizer Calculator from CNN Money helps you rank your goals in order of importance to you, and gives you a focus for your plan.