Most of us may have a New Year Resolution to start our New Year. It can be from losing weight (LOL. Its the most common resolution including mine), having better financial, getting your well deserved promotion & many others.
Before you continue reading, lets take some time to reflect on your 2018 Financial Status. It may be good, bad or average. Whether your 2018 Finances is a good, bad or average, its time to have a better Financial Planning for 2019. Agree? So lets stop procrastinating & start our 2019 Financial Planning now.
Ask yourself a question,What is Your Financial Goal for 2019? Do you have any? If you read this book “The 7th Habits of Highly Effective People By Stephen R. Covey”, his Habit 2 covers “Begin with the End in Mind”. This habit can be relate to your Financial Goal for 2019. Think of what is your Financial Goal is & start planning from there.
How Can You Set A Good Financial Goal?
First of all, you need to have a SMART Financial Goal. Yes I mean SMART Financial Goal. What does SMART stands for?
1. Specific – Be 100% clear with what you want
2. Measurable – Your Financial Goal have to come with numbers
3. Achievable – Make sure your Financial Goal is achievable
4. Realistic – Your Financial Goal amount have to be realistic
5. Timeline – Make sure you have a timeline for it
Once you have your SMART Financial Goal, lets look deeper into your current Financial Health.
How healthy is your current Financial status? You can start by looking into your Income, Cash, Investment & Debt.
What are you current source of income? How much do you earn monthly? Do you have more than 1 source of income? If no, maybe its time to set this as your 2019 Financial Goal.
How much cash do you have at the moment? Do you have Emergency cash if you need it? My recommendation is, you have at least 3-6 month of cash on standby.
Do you invest at the moment? If you do, look at your Investment Portfolio. You can fine tune it & rebalance it to make it better if needed. This applies for all your liquid investment. If you have a property that you are renting out, this can be considered an investment too.
It can be in a form of Good Debt or Bad Debt. Do list down all your debt such as Credit Card, Personal Loan, Car Loan & Mortgage Loan. If you want to read more on how to clear your Debt fast, you can click on this link.
The most common case is, Debt will be higher than your Income, Cash & Investment. This may sound scary but if you plan it well, you are able to escape from your Debt sooner than before. But…. If your Income, Cash & Investment are higher than your Debt, You are on a Right Journey Towards Your Financial Freedom 🙂
Now you have your Financial Goal & you know your Financial Health. What’s Next?
I find this 4 Quadrant to be really helpful after my last session with my Coach. You can also checkout his blog at World of Habits. Here is how you can plan your 2019 Financial as per below 4 Quadrant :
In order for you to achieve your Financial Goal, what are the effort that you have to START to do?
What do you have to INCREASE to hit your Financial Goal? It can be income or productivity that can help you to boost your Financial Goal.
What do you have to STOP doing to achieve your Financial Goal? Stop spending money on unnecessary item? It can be one of it.
What can you DECREASE? The funniest thing that I wrote in my DECREASE column is “Less Supper”. LOL. That helps me to save money & live a healthier life.
We have pretty much covered everything for Your Financial Planning 2019. So far we have covered your SMART Financial Goal, Your Financial Health & 4 Quadrant for Your Financial Planning. You might be planning it while reading this or you might not plan it yet. If you have not plan it, I have a good news to share with you. To ease your Financial Planning, I have prepared the 4 Quadrant PDF File to help you with your Financial Planning. Sample as below :
Download link are available to you when you Subscribe to this website. Dont forget to Subscribe & dont worry. I wont be spamming you with unnecessary email. 🙂 Anyway, I Wish You All the Best for 2019 & Have a Great Year Ahead.