What is a SWOT Analysis?
A SWOT Analysis is a simple but effective strategic planning tool that can be used to assess your current financial situation, and start planning for the future. SWOT stands for Strengths, Weaknesses, Opportunities and Threats.
According to the Harvard Business Review (2019), a SWOT Analysis is a timeless business strategy that is useful for managing personal finances. It can help you determine what you need to focus on, what needs your attention, or what needs to be improved.
In South Africa, a SWOT Analysis is commonly used in the workplace but when it comes to personal finances, a SWOT Analysis is grossly underrated in Financial Planning.
It only takes 5 steps to compile a Personal Finance SWOT Analysis. Step 1 of the process focuses on Financial Strengths, covered in the next post – Personal Finance SWOT Analysis : Part 2.
Information Source:
Harvard Business Review
https://hbr.org/2019/08/manage-your-personal-finances-with-these-timeless-strategies
