What Should You Do With Your Financial Plan?

Financial Planning

Careful financial planning and monitoring of the family budget are a necessary step in the formulation of spending, savings and investment objectives.

The good financial plan is based on the analysis of the financial and patrimonial situation of the family. Based on the available income and expenditure over a certain period (one month, one semester, one year) you can calculate how much to allocate for a loan, how much to invest or how much to set aside to secure your future expenses.

Is It Necessary?

It is necessary to create a family budget based on assets, income, and expenses. This means that the individual needs to ask questions about their financial needs. The questions have nothing to do with performance, tools, trading, and intermediaries. What is the annual income of your family? What is the ability to save? What do you have to invest for? What goals do you need in the next few years? Buy a car ora house? Will your children go to university or do they do a master’s degree? Will you be going to need to integrate your standard of living when you retire?

We need to understand how we are related to our earnings and be aware of our needs. It is important to welcome them, internalize them and convert them into goals for a financial plan. Saving is the starting point to set aside wealth for future needs. Only through savings is it possible to achieve medium to long-term objectives (going around the world, changing houses or cars, for example), in order of priority assigned according to our preferences.

A Step towards It

With this concept, you are intended to indicate a financial plan that should reflect current circumstances. In short, it should address needs, as well as current and future wishes.

• Retirement.

• Funding for education.

• Property planning.

• Risk management.

• Wealth management.

In short, we must analyze the financial and patrimonial situation of the family first of all and then after monitoring and be updating the plan over time.

To have goals

The essential point for all types of investments is to think about what kind of investment you want to make from today to the next 10 years. For another, you have to ask for example if you want to live on income or if you want to think about your future and be quiet as well as the future of your children, etc. You cannot think about “earning as much as possible”, but you have to satisfy all your financial goals in the best way with the right compromise risk – return.

Create a system to invest

This is the second step to be taken. You have to invent a system that allows you to invest, which offers you the opportunity to meet the investment objectives that you have placed and that allows you to dynamically change the portfolios when the market conditions change. This is very important. On the other hand, you must always consider whether the system must be psychologically sustainable. Only in case you are aware of the destination you can enjoy it all.

Make lists

This first element absolutely does not involve the possession of knowledge of mathematics, economics, and statistics. Nothing more wrong. All you have to do is have clear ideas about what is most valuable to you. In practice, you have to make a list in which to insert all your main passions as well as all of your interests that you would like to reach and all that you like. Only after doing this, you must indicate the years within which you want to achieve these goals for a financial plan.

The creation of these lists involves a certain degree of complexity as it also means reasoning about who you are and especially about who you would like to be in the course of your life. You will also notice that some things will remain similar, and we recommend you then just start with those goals.

The system in order of importance

At this point, once you have put on paper the objectives to be achieved, you just have to arrange them in order of importance, with your goals and your passions. This method will also help you to make a mental order as well as to understand what are the things on which to direct more resources and financial energies are in right now.


At this point, you just have to understand how long you want to achieve your goals. This means indicating when we want the things on our list to come true. As said before all the investment objectives cannot be achieved and we must also consider respecting the feasibility of the objective in a given period of time. Some objectives have to be postponed a little over time, and this could be an ideal solution if you have to worry about building and accumulating the resources necessary for their purchase or use.

Fill out a list of your income and your family members, that is income from work (Also consider the extra income that occurs during the year, such as thirteenth and fourteenth, tax rebates, etc.) and income. Income feeds on the wealth of the family, consisting of real assets (e.g. real estate) and financial assets. Only in this way, you will have a precise financial plan and right consideration of your goals.