Everyone has probably thought about their financial future at some point or another. Not everyone makes a conscious decision to take the steps necessary to make an actual financial plan for the future. However, this is critical to financial health. But some education is needed. You might ask what does financial planning look like? Below are a few steps to get you started.

Establish Financial Goals

The first step in a great plan is to set some goals. Consider the things you want to have and where you want to be in five or ten years. Setting goals will encourage you to follow through with the steps necessary to achieve your goals.

Identify Where Your Money is Going

Once you establish some goals, determine where your money is actually going. Follow the trail step by step through the month to see where you are spending money unnecessarily. Start following the 50/30/20 budget principal to help move your money in the right direction.

Begin and Build Your Savings

If not started already, begin saving right away. According to the 50/30/20 budget, 20% of your income should go towards savings and paying down debt if needed. Start setting up emergency funds for those surprise situations that can come up.

Start Investing

Investing is part of your savings step. This can include a 401(k), an IRA or a college savings plan. Insurance, such as car insurance and homeowners insurance, is important in your financial plan. This helps protect your assets. Another piece to consider is establishing a fiduciary to protect and manage your finances when needed. Find trust fiduciary services Santa Clarita CA to get started. 

Protect yourself, your future and your loved ones by creating a financial plan for your future. Remember to find a fiduciary to keep everything in the right hands and managed well.