Step in Financial Planning

To make a plan for your financial, you need a target. What is your target? For example, your target is to get a car worth 50k. It is important to have a realistic target that is suitable with your financial condition and salary. Then state the time frame on when do you want to buy that car. For example, you want the car in 1 year times, so in that particular year, you can plan and save the amount of money require to pay the down payment of the car and to make any platform to make monthly payment of the car.

After that, make a plan to achieve the target. You can use suitable financial products in the market such as an overdraft and ASB to make your platform. This is how it works, with all the money you save in 1 year, you but ASB and convert it to ASB certificate. After that, take the certificate to a bank that offer an Overdraft (OD) facility that accept ASB as a mortgage. The OD/ASB is your platform to pay the down payment of the car and monthly payment. In this way, you pay using your platform and did not touch any money that you get from your salary.

With this, you are saving money by saving in the ASB and in the same time, you use that money in the form of OD. The plan is to have a platform that equivalent to 30% of the car value and pay the car using the platform.

Then, u need to implement the plan. This is the most important part of the financial planning. You must implement the plan that you do or given by. The plan will be useless if you did not implement and the plan must be followed accordingly and with discipline otherwise you may face a problem or the plan can simply fail.

Of course, all this things have their own risk and obstacle so we must not demoralize by all the obstacle we face. After a certain period, we can review back the plan that we use and if the plan have fail or face problem(s), we can go back to step 1 and do everything back all over again.