Steps to reach money goals

Look at components that help create wealth and protect it.

- Craig Torr

Based on our experience, individuals with a financial plan are more likely to save for retirement, manage their bills and enjoy a comfortable lifestyle.

Let's examine the process of creating a financial plan, the key components and how they work to form a strong strategy for wealth creation and protection.

1. Your lifestyle goals

The first step in creating a financial plan is identifying your life goals, as these will form the foundation of your strategy. Recognise that life is dynamic and goals can evolve, so your plan should be robust enough to help you achieve your objectives and flexible to adapt to changing circumstances.

When setting your goals, aim to be specific, attaching monetary values and timeframes to each. This approach will aid in developing solutions and measuring progress during plan reviews.

2. Balance sheet

Assessing your net worth is a crucial step in financial planning, but don't be discouraged by the calculations. Building wealth is typically a gradual process that unfolds over decades, and it all begins with a clear starting point.

Start by listing all your assets, including bank accounts, investments, property, business shares, vehicles and immovable assets.