There are three aspects of financial planning that should be considered when formulating an actionable plan to achieve your financial goals: short-term, mid-term, and long-term. Short-term planning includes budgeting, making sure you have enough in savings to cover expenses for the next few months. Everything You Need to Know About Financial Planning

Creating Your Budget
A budget is the best way to keep track of your spending. It’s a tool that helps you decide how much money you want to spend on different things and whether you have enough money in your bank account. To create a budget, start by listing all of your monthly expenses and dividing them into categories: necessities (things like rent or groceries), wants (dining out or entertainment), retirement (contributions or savings), and emergencies (savings for anything that could happen). Next, look at your income. Everything You Need to Know About Financial Planning
Saving Money on a Budget
Setting a budget is the first step in financial planning. This is because it allows you to track your expenses and know where your money is going. Budgeting also ensures that you will have enough money for important expenses like rent, food, or car payments.
Investing Money
Investing your money is a great way to create wealth and enjoy the benefits of compound interest. There are many different types of investments out there, from stocks, bonds, mutual funds, and exchange-traded funds (ETFs) to real estate investment trusts (REITs), commodity futures, and more.
Understanding Interest Rates and Taxes
Interest rates are the cost of borrowing money, and taxes are one way that governments make sure they get their share of what you earn. The tax rate is typically applied to your income before it’s used for anything else. Taxes can be divided into two categories: direct and indirect. Direct taxes take a chunk out of your income as soon as you earn it, like payroll taxes or property taxes. Indirect taxes happen later on, like when you buy things at the store or gas pump.

Allocating Your Investments
If you’re looking for a place to invest your hard-earned money, you might want to consider an investment account. The most common type of investment account is called a brokerage account. Brokerage accounts are great because they let you buy stocks, bonds and mutual funds. Another type of investment account is called a retirement account. Retirement accounts give you tax advantages, which can help save on taxes as well as make your money grow faster than it would in a regular bank or brokerage account.
Spending Money on a Budget
It’s important to know how much money you have coming in and going out. Tracking your expenses can help you figure out what you need, what you want and what is a luxury. By tracking your spending, you’ll be able to figure out where all your money is going, which will allow you to make decisions about your priorities. One way of tracking your expenses is by keeping track of how much money is spent on an average day.
Understanding Insurance Policies
One of the most important insurance policies you can have is a homeowners or renters policy. These policies protect your property and personal belongings against fire, smoke, vandalism, theft or natural disasters. Insurance is also a great way to cover your liability in the event that someone gets hurt on your property.
Other common insurance policies are life insurance and disability insurance. Life insurance pays out death benefits if you die before you’ve accumulated enough savings for retirement purposes or other financial needs.

Retirement Planning
The general rule of thumb is that you should be saving 10% of your income and investing those savings, but experts often recommend people save more.
Generally, it’s a good idea to start thinking about retirement at age 25, but you’ll have time for some market fluctuations with an investment account that starts at $10,000.