hey there Tiffany Thomas with wealthy Tiffany dot com and in today's video I'm
going to talk about setting up your financial plan so you can get your
finances in order and before we dive in if you guys are looking for more
strategies and tips on becoming financially free at a young age make
sure and subscribe to my youtube channel and hit that little bell to get notified
on when I post new videos and don't forget to like and share this video and
if you guys are looking to make your money work for you instead of you
working for your money all the time make sure and click the link below this
video and I show you exactly how I have been able to make my money work for me
in the simplest way possible and the most profitable way possible okay so
let's talk about setting up your financial plan and I have eight steps to
setting up your financial plan the first step is to identify your goals I talk
about this a lot if you don't know what you're working toward how are you going
to get there you're not going to get there and you don't yeah if you don't
know what your financial goals are and then you're just kind of tracking your
money or maybe just floating along not really making any progress so that's the
first step in setting up your financial plan is to know what your financial
goals are and I also like to include my goals in my budget or my spending plan
is what I like to call it and so put those in your spending plan put in your
goals whether that is saving for a down payment on a house or for purchasing a
car or maybe you just want to take a trip somewhere like to Hawaii or Bali or
Europe wherever and that could be one of your goals so whatever it is you want to
know what you're working toward and it could also be financial freedom that's
what I'm working toward right now that is my number one priority so I have kind
of put my big trips on hold for right now I've done a lot of traveling in the
past but that's not a priority for me right now financial freedom is
and that's my that's my financial goal okay so once you have your financial
goals set up the next thing you want to do is to figure out what your net worth
is so this is step number two you want to figure out what your net worth is and
all that is is knowing all of your assets and then subtracting all of your
liabilities so all of your assets would be if you own a home or a car maybe you
have some expensive jewelry or some really nice artwork whatever assets
things that you could sell and get money for those would be your assets and it
would also include money in the bank or in your 401k or an investment account so
you want to include how much you know your house is worth and how much your
car is worth and whatever other large assets you may have and also any money
that you have in your savings or your checking and in your investment accounts
so like your 401k or your IRA and that would be all of your assets so you want
to put those all in a spreadsheet is a great way to do it and just list them
out line item by line item and then you want to figure out what all of your
liabilities are and this is everything that you owe so assets are what you own
things that you own and liabilities are what you owe for example if you still
owe money on your house and like your mortgage then this would
be in your liabilities how much ever you owe and if you have a car payment so
whatever the amount is on your car loan that would be another liability any any
type of things like that any maybe you have some credit card debt or student
loan debt anything that you Oh Oh on that would be your liability and once
you take all of your assets and then you want to - all of your liabilities and
that will be your net worth so this is essentially how much money you're worth
right now and you want to continue to watch this
number grow or yeah grow up and go up so that you can become financially free or
retire whatever number you're working towards for your net worth and so that's
the second step is figuring out what your net worth is and then the third
step is figuring out your cash flow so how much income you have coming in and
you want to make sure that you have more money coming in than going out right so
that we can actually work toward our financial goals so you want to figure
out what your paycheck amount is and then all of your expenses like your
phone bill or your house payment or rent insurance things like that and so you
want to know you want to calculate what your cash flow is so you know exactly
how much money you have coming in and how much you have going out and when you
are figuring out all of your different expenses and what of all of your income
is coming in and you can do that in a spreadsheet and you can also use an
online tool I use personal capital and I can leave a link below if you are
interested in using personal capital you can link all of your financial
institutions to that it's a free website and you just create a free account and
it will show you all of your assets and all of your liabilities and all of your
transactions that are coming in and coming out and it's all in one place so
it is super handy I love using it and I also use a spreadsheet as well so I do
both and yeah that has worked great for me so if you are interested in personal
capital I will leaving a referral link below and you can get a $20 Amazon gift
card if you sign up and link one of your investment accounts to it and hopefully
you have that positive cash flow so you can put extra toward your financial
goals and then the fourth thing I talked about this before is to match your goals
to your spending you want to match your your spending to your priorities
whatever your financial goals are you want to start matching the spending
to those goals for example if you take a look at all of your expenses and maybe
you're spending a lot of money eating out but really one of your goals is to
go on vacation within the next year so you're not really putting a lot of money
in a savings account in order to save for that vacation but you're spending
your money on eating out so you really need to start to focus and say okay what
is my financial goal and am i spending accordingly am i getting closer to my
financial goal or do I need to change some of my spending habits do I need to
look at some of my expenses that aren't that important to me you know and that's
maybe going to the movies a lot or just you know not really focusing in on
what's important to you but just kind of going with the flow and doing whatever
your friends are doing and yeah you really need to focus in on matching your
spending to your priorities to your financial goals so that you can actually
reach your goals because that's what you're working toward that's what you
really want and then step number five in your financial plan is to review your
insurance and I find this one I mean it's like it's a little interesting but
you want to take a look at your health insurance and since I am an entrepreneur
there's no one you know that I I don't have a a job per se that is helping me
provide that insurance for me and so I just have a insurance setup on my own
and just through the insurance marketplace but I have insurance because
anything could go wrong at any moment right and I don't need to be paying an
astronomical amount of money just because I didn't feel like having
insurance so you need to take a look at your insurance and I honestly have a
really high deductible insurance so that I can use an HSA account a health
savings account because I really don't go to the doctor that often my medical
expenses are very very low and but you could be in a different situation where
you have really high medic expenses so you want to make sure you
have the right insurance for your needs and that's just you know one other thing
to include in your financial plan because we don't want to be stressed
stuck with an astronomical health bill medical bill because that will not help
us reach our financial goals we want to make sure that we have the right
insurance and this can also include your other insurances like your home
insurance or auto insurance because you always want to be reviewing those
different you can have different extremely different prices with
different companies so you want to be reviewing those at least every year and
seeing if you can get a lower insurance rate because you never know and if
you're not really shopping around and you kind of just forget about it you
could be paying a lot higher rate so that is the fifth step is to review your
insurance coverage and then the sixth step step number six is to reduce your
taxes we pay a lot in taxes so you want to look for different ways that you can
reduce your taxes and because that will really save you in the long run for sure
and you know you can do that one way is to start your own business because you
can do a lot of write-offs on taxes if you have your own business so you don't
just want to take a look and see how can I lower my taxes and maybe that has to
do with your investment accounts you know with a Roth IRA IRA versus a
traditional IRA things like that but that is step number six looking at ways
that you can reduce your taxes and then step number seven is to create your own
investing policy and I really like this one because once you have that policy in
place it makes it a lot easier to invest your money which is what we want to be
doing because we want to be making our money work for S right but you don't
always want to be working for the money trading time for dollars and so if you
create your own investing policy or investing strategy it makes it a lot
easier to invest your money because you already know okay this is my policy this
is what I do and this is what I don't do and when you kind of break it down like
that then when an opportunity presents itself
you can just say okay does this go along with my investing strategy or does it
not because if it doesn't I'm not going to invest in it if it does great I'm
gonna do my homework make sure it's a good investment and do it so this could
be something as simple as I only invest in index funds or I only invest in
stocks that I am familiar with or I only invest in real estate or maybe I do a
combination I invest in stocks and in real estate and for real estate I only
invest in buy and hold properties and that's part of my investing strategy so
you want to just figure out what your strategy is and start investing your
money it'll make it a lot easier once your strategy is in place because you
won't have to think oh should I do this investment or should I not you'll just
think okay does this go along with my investing strategy yes okay I'll do my
homework it looks good let's do it or no it doesn't I'm gonna pass and you'll
find another opportunity okay and then step number eight is to have a well or a
trust in place something that will protect all of these assets that you
have and be able to give them to your family your spouse or your children
whoever it might be if something were to happen to you so you want to make sure
you you have that protection in place in case something does go wrong and you
just never know and it's better to be safe than sorry right you just want to
be prepared and that way you're not worrying about it it's already taken
care of so you want to get that set up as well and these are the eight steps to
setting up your financial plan and so comment below if you have taken some of
these steps I would love to know or if you are going to now set up your
financial plan comment below tell me where you're at in the process and if
you are going to complete your financial plan if you haven't already and
hopefully these steps help you get your financial plan set up and if you guys
are really serious about taking care of your finances
and making your money work for you make sure and check out the link below the
video to see how I have been able to make my money work for me and create a
passive income and that has actually been the most profitable and the most
easy so click that link below for that information don't forget to subscribe to
my youtube channel if you want more information about becoming financially
for you to young age and don't forget to like and share this video with someone
who needs this information and I will see you guys in the next video
r8 Thanks