The first step in DIY financial planning is to set clear and realistic financial goals and objectives. These goals should reflect your values, priorities, and aspirations, and should be specific, measurable, attainable, relevant, and time-bound (SMART). By setting SMART goals, you can create a roadmap to guide your financial decisions and actions.
Begin by identifying your short-term, medium-term, and long-term financial goals. Short-term goals may include saving for a vacation, paying off a credit card, or establishing an emergency fund. Medium-term goals could involve buying a car, starting a business, or saving for a down payment on a home. Long-term goals might consist of funding your children's education, retiring comfortably, or leaving a legacy for future generations.
Once you have identified your goals, prioritize them based on their importance and urgency. This will help you allocate your resources effectively and stay focused on your most critical objectives. Keep in mind that your goals may change over time as your circumstances and priorities evolve, so it is essential to review and update them regularly.