1. Setting goals 
2. Evaluating financial status 
3. Creating financial plan 
4. Carrying out financial plan 
5. Reviewing and revising the progress

• It is a first step in the financial management process.
• The financial goals must be prioritised and specific.

  Short-Term Financial Goals	Long-Term Financial Goals	SMART Financial Goals
  It can be achieved in less than a year. Short term financial goals do not involve a large amount of money.	It usually takes more than five years to achieve.  Long term financial goals involve a large amount of money.	Financial goals set based on the SMART concept our spending in order to achieve the desired financial goals.
  Example: Purchasing a laptop, furniture, a cell phone and other items.	Example: Children's education, medical expenses and others.	\(\begin{aligned} &\space S- \text{Specific} \\& M- \text{Measurable} \\& A- \text{Affordable} \\& R- \text{Reliable} \\& T- \text{Time-bound} \end{aligned}\)

• Assets and liabilities are the benchmarks for evaluating our financial status.
• Evaluating our financial status helps us measure our performance in the effort of achieving our short-term and long-term financial goals.

Steps to Consider Before Creating a Financial Plan 

1. Define the short term and long term goals.
2. Make an initial budget to achieve each goal.
3. Calculate monthly savings needed to achieve the short-term and long-term goals.
4. Analyse spending behavior.
5. Set a time frame to achieve each goal.
6. Determine income strategies that will help to achieve the financial goals. 

• It turns the financial planning into action that can be implemented.
• When carrying out a financial plan, we must follow the plan at an early stage. 
• We must ready to change and compare the planned monthly expenses and actual expenses. 

• Reviewing and revising the progress of a financial plan from time to time is important to make sure the cash flow is always positive.
• This indirectly helps us to achieve our financial goals as planned.

• An effective financial plan should be get aside \(10 \%\) savings of the total income prior to engaging any fixed and variable expenses. 
• If there is a negative cash flow, we should adjust the financial plan by reducing the variable expenses. 

1. Setting goals 
2. Evaluating financial status 
3. Creating financial plan 
4. Carrying out financial plan 
5. Reviewing and revising the progress

• It is a first step in the financial management process.
• The financial goals must be prioritised and specific.

  Short-Term Financial Goals	Long-Term Financial Goals	SMART Financial Goals
  It can be achieved in less than a year. Short term financial goals do not involve a large amount of money.	It usually takes more than five years to achieve.  Long term financial goals involve a large amount of money.	Financial goals set based on the SMART concept our spending in order to achieve the desired financial goals.
  Example: Purchasing a laptop, furniture, a cell phone and other items.	Example: Children's education, medical expenses and others.	\(\begin{aligned} &\space S- \text{Specific} \\& M- \text{Measurable} \\& A- \text{Affordable} \\& R- \text{Reliable} \\& T- \text{Time-bound} \end{aligned}\)

• Assets and liabilities are the benchmarks for evaluating our financial status.
• Evaluating our financial status helps us measure our performance in the effort of achieving our short-term and long-term financial goals.

Steps to Consider Before Creating a Financial Plan 

1. Define the short term and long term goals.
2. Make an initial budget to achieve each goal.
3. Calculate monthly savings needed to achieve the short-term and long-term goals.
4. Analyse spending behavior.
5. Set a time frame to achieve each goal.
6. Determine income strategies that will help to achieve the financial goals. 

• It turns the financial planning into action that can be implemented.
• When carrying out a financial plan, we must follow the plan at an early stage. 
• We must ready to change and compare the planned monthly expenses and actual expenses. 

• Reviewing and revising the progress of a financial plan from time to time is important to make sure the cash flow is always positive.
• This indirectly helps us to achieve our financial goals as planned.

• An effective financial plan should be get aside \(10 \%\) savings of the total income prior to engaging any fixed and variable expenses. 
• If there is a negative cash flow, we should adjust the financial plan by reducing the variable expenses.