Importance of financial goal
It leads you in becoming financially secure, debt-free life, it helps you to achieve financial independence. It
gives direction in your financial decision
Setting financial objectives will help you focus on your priorities, so you’ll begin to
align your actions with your values. They act as a filter that eliminates those tempting
distractions
Financial goals should be specific, measurable, achievable, and time-based.
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You can create an effective action plan for your finances
You can choose appropriate strategies
You can measure your progress
You know what your priorities are
You strengthen your motivation and commitment
You increase your chances of experiencing positive outcomes
You create built-in accountability
You improve your money mindset
You have hope and confidence in your future
Values- They are the things we care deeply about and the basis for the choices we make in life.
Consider to be important
your values will help you cut out spending on the things you don’t care
about and use your money for things most important to you. Managing your
financial and spending your money in a way that aligns in your value
Identifying
Example: if health is one of your core values, you might spend less on fast food
and more on quality foods and fitness.
Financial planning –
method of wisely managing your finances so you can achieve your goals . overview of the steps you’ll have to take
to achieve the goals you lay out for yourself. Manage your finances and prepare for all of the potential costs
and issues that may arise.
It is a strategic planning of your money to achieve whatever your particular objective is.
Benefits : it improves your financial outcomes, it helps you to set goals, and it provides a guide for action and
decision making with regards to finances.
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When it comes to business, FP helps in making growth and expansion which helps in long-run
survival of the company. ensuring the balance between the outflow and inflow