Question

Why do you think that "defining financial goals" is the first step in financial planing?

Answer 1

The first step in developing a financial plan is to establish financial goals. Articulating the financial goals explicitly will help to understand what you want to achieve financially and in what time you want to achieve. Without a financial goal, you will not be able to set a direction for yourself that you want to take to reach your financial goal. The financial goal provides you with a clear direction that you have to take and helps you to choose your investment strategies in order to reach your financial goal.

Thus defining financial goal is the first step to be taken in financial planning.