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Fundamentals of financial planning - a guide for residents of the UAE

Article image: Fundamentals of financial planning - a guide for residents of the UAE

Financial planning is the process of assessing your own payment opportunities and financial status. Financial planning allows you to calculate your future income and expenses. It is financial planning that gives you the opportunity to make conscious and prudent decisions about money. This approach significantly helps in achieving life goals. Personal financial planning is the extremely important component of well-being. Financial planning in the UAE will help you avoid unnecessary expenses and clearly estimate your budget; this is a kind of design. You can deal with financial planning issues personally or hire a professional in this field. The methods of financial planning can be different. As a rule, financial planning includes the following stages:

  • The need to define short-term and long-term life goals;
  • The analysis of own financial resources and assessment of financial condition;
  • The development of a financial plan, a kind of roadmap;
  • The implementation of the financial plan;
  • The improvement, introduction of changes in the plan.

Objectives of financial planning

Financial planning in the UAE or anywhere else in the world will make you feel more confident. Understanding how to allocate a budget reduces stress and gives you complete control over your own expenses. The objectives of financial planning can be extremely diverse and depend on each specific case. Goals also depend on whether you are planning for yourself and your family or for the enterprise. Let's try to identify the most common of them:

  • analysis of cash flows;
  • planning of the retirement strategy;
  • control over risk factors;
  • development of a long-term investment plan;
  • planning of taxes.

When drawing up a financial plan in the UAE, remember that there are no income and corporate taxes on the territory of this state. One of the important components of financial planning is the family budget. There are even special online family budget planners. Their goal is to help you to calculate the difference between expected and real monthly expenses.

If you ask yourself how to manage a family budget, such planner can very much help you out. There are also computer programs that can be very useful in financial planning in the UAE or other countries of the world, such as Excel. You can also use Google Docs, the SimplePlanning scheduler, or the Monthly Budget or Personal Budget templates. All of them are also available online.

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