Expat Financial Planning
Financial planning heavily involves money matters. It is essential to earn money as well as know how to save, spend, invest, and control it in order to achieve set financial and life goals. The reward of sound money management is an improvement in standards of living and lifestyle.
It also concerns an individual’s lifestyle. Lifestyle is the way a person lives his daily life. Financial planning can influence our choice of careers, friends, hobbies, communities, and possessions, and yet personal finances can also be determined by our lifestyles
It might involve putting appropriate wills in place to protect your family, thinking about how your family will manage without your income should you fall ill or die prematurely, spending money differently, but it involves thinking about all of these things together i.e. your 'plan'. You can build a plan on your own, or if your needs are more complex you might want the help of a Financial Planner.
Create a sound financial plan in six steps
- Establish your goals in life – short, medium and long term
- Work out what assets and liabilities you have – write them down
- Evaluate your current financial position – how close are you to achieving your goals?
- Develop your plan – create a “route map” for achieving your different goals
- Implement your plan – make the changes and make it happen
- Monitor and review your plan at least yearly and make adjustments when needed
Start by working out your goals in life, in the short, medium and long term. Prioritise them, and think about the likely cost of those goals and when you will need the money, so you can start to plan your finances to work out how to achieve them.
Don’t forget you also have to plan for some of the hurdles you may have to overcome too. It’s about getting organised; being in control of your finances rather than letting your finances control you