How to create financial planning?

Life without planning is just like sailing in the ocean where the are no land. When calm ocean, you will loose without direction, in the inflame, you are been hit by dangerous wave. That go to the same with the finance planning.
It is easy to create a simple finance planning because it is a first step to managed your finance.
Here have 4 step that need to be taken:

1. setup your finance target.
2. investigate where your money go.
3. review your spending habit.
4. write down your spending plan.

1 step: Setup your finance target

Finance target reflect to what you have done with the money in certain time of period. Finance target enable you to spend and save in order to achieve the finance target. This target can be in long, medium, and short term it all rely on many factors such as total dependant, age, income, status of marriage and etc.Long term this could be saving for golden age (retire).Medium can refer to buying house or car. Meanwhile, short term is referring to settle credit card debt.

Step 2: Investigate where your money go

Next, you need to do some monitor on your habit of spending. This can be start by record all your spending for certain period (a week, a month, or three month). All the data you record can be use by to see where your money have gone, not in the purpose of reduce or cut back spending.

Step 3: Review your spending habit

You need to do homework, why in the end of the month there is not more money left behind. Spend some time to review you spending list daily and think whether or not it is a need or desire. If there are a room for desire you need to reduce it. Make sure identified and dodge your bad habit spending.

Step 4: Write down your spending plan

After you have done some homework regarding your spending habit, you able to make better financial planning which will enable you to achieving your financial target.