If you've got about 30 minutes to spare, that's all it takes to start creating a basic financial plan - giving you a good foundation to build on.
At this stage you need to look at how you're going to achieve the goals you listed in Step 1. There are many different ways to save and invest - from deposit accounts and bonds to property, shares and investment funds. To find out what options are available to you, you could do some research online. Or ask your family and friends how they manage their finances.
If you're thinking about building an investment portfolio, a financial adviser could recommend savings, investment and protection strategies based on your current situation, your plans for the future and your goals in life.
When you're looking at your options, there are some key issues to think about:
- How much risk are you prepared to take?
- With deposit rates low and inflation high, could there be a shortfall in your savings when you retire?
- Can you take advantage of any potential tax benefits* of living and working abroad?
- How would a life insurance policy be affected if you moved to a different country?
- If you're thinking of retiring abroad, have you checked how the cost of living compares with where you're living now?
When you've written down all your options, you can weigh up the pros and cons of each one. Be realistic about how much you can afford to save each month - and think about how much you're happy to keep in long term investments.
Now you've assessed your financial situation and your goals for the future, you may want to meet with someone to discuss different strategies and approaches. Or you might feel confident enough to start implementing your plan yourself.
*The value of tax treatment will depend on your individual circumstances and may be subject to change in the future.