Question

Financial planning requires preparation. a. True b. False

Answer 1

Yes it does you need to prepare many different things big and small to start a financial plan. True

Answer 2

This statement is true.

Financial planning requires preparations.

The first thing you need to do is to create a financial plan - a guide for you to achieve your financial goals. You have to develop a budget in order to know where all your money goes and what you spend most of your money on. This will help you to get a perspective on how much money you really need every month for basic and obligatory expenses. Next, you have to set your financial goals, realistic ones and goals that you know you would be able to meet. The best thing is to write them down. After all this, start saving. Saving is an essential part of every financial planning. Try not to outspend your income and cut back where necessary. Try to put some money aside every month, even if it is a small amount. If you are able to save something over a longer period of time, it's advisable to invest this money to earn interests or other benefits.