Planning Your Financial Future
We are all guilty of putting off making time to plan our financial future. It’s hard, that’s why, particularly finding the discipline to do it in today’s consumer culture. However, you can’t underestimate the importance of financial planning. Everyone retires eventually, and there’s also retrenchment, redundancy, and accidents happen. Planning your finances now means less stress and more stability as you get older.
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We could all use a few tips to get started, and once it’s part of your routine, financial planning actually isn’t that difficult. Just like walking, the first steps are the hardest, and these tips are designed to kick-start the desire to make planning your financial future on of your main goals.
Financial Planning Tip #1 Pay off Debt
Debt is a large hurdle to get over when starting to plan your finances, particularly credit card debts, which start out small but through interest and fees become large before you realize. Financial planning is simply planning your work, and then working to your plan, where the primary goal should be getting out of debt.
Financial Planning Tip #2 Make Investments
The next tip relates to having investments in your financial plan. You are making provision for the future with your savings, and those savings need to grow. Consider taking some of your earnings and investing in the stock market, bonds, IRAs, 4019k or a mixture of instruments that will give you a balanced portfolio. You need to get your money working for you, and the only way to do that is to incorporate investments in your financial plan.
Financial Planning Tip #3 Spend Less than You Earn
People often find this difficult to understand, and because of this resist establishing a financial plan. Why? Bigger and better is the American way, and it’s hard to cut back when you have earned the money. But your financial plan is your future, and more important than consumerism, so make spending less a priority in your financial planning.
Financial Planning Tip #4 Set a Budget
You will not be able to save until you actually know what you spend. Incorporate a budget in your financial planning, stick to it, and you will be surprised at how easy saving money becomes.
Financial Planning Tip #1 Pay off Debt
Debt is a large hurdle to get over when starting to plan your finances, particularly credit card debts, which start out small but through interest and fees become large before you realize. Financial planning is simply planning your work, and then working to your plan, where the primary goal should be getting out of debt.
Financial Planning Tip #2 Make Investments
The next tip relates to having investments in your financial plan. You are making provision for the future with your savings, and those savings need to grow. Consider taking some of your earnings and investing in the stock market, bonds, IRAs, 4019k or a mixture of instruments that will give you a balanced portfolio. You need to get your money working for you, and the only way to do that is to incorporate investments in your financial plan.
Financial Planning Tip #3 Spend Less than You Earn
People often find this difficult to understand, and because of this resist establishing a financial plan. Why? Bigger and better is the American way, and it’s hard to cut back when you have earned the money. But your financial plan is your future, and more important than consumerism, so make spending less a priority in your financial planning.
Financial Planning Tip #4 Set a Budget
You will not be able to save until you actually know what you spend. Incorporate a budget in your financial planning, stick to it, and you will be surprised at how easy saving money becomes.
6 Financial Planning Misconceptions Demystified
Financial planning may mean different things for different people. Some assume that they need no financial planning as they have very little finances. Still others believe thatonce they have invested their savings for future their task is over. In addition some pre-conceived notions that company we work for, pays our medical and hospitalization expenses so we need no reserve, combined with the notion that a life insurance policy takes care of death, disability and accidents.
The need for no financial planning is complemented with the myth especially among the young that their retirement is far away and they could easily plan for it just a few years in advance. To further complement this myth that our ancestors would leave behind estate and property for us to enjoy with a will.
Well dear friends financial planning can never be overlooked as finances invested well today could provide for good financial resources in future. It is true that a person who helps himself succeeds best in having financial stability in life.
Have a look at the myths of financial planning:
All you are investments are really supporting your financial goals or not? Is the schemes in which you have invested is really performing or not? Is the maturity value from the schemes is sufficient to meet the goals or not?
A financial need analysis to cover various short term and long term needs could be best accomplished with a financial expert’s advice on financial planning.
Saving for retirement starting from youth through retirement plans seems much easier when the amount to be put aside for the corpus is much less every year and it is also possible to save through various investment avenues. Starting to invest for retirement when young gives one the advantages of compounding of savings. This would also help take care of inflationary tendencies.
Being young does not prevent you or any of your family members from getting a critical illness with the present lifestyle. With fresh insurance coverage over the age of 45 being tough it is best to save for this period.
Financial planning is not just the forte of finance professionals alone, but is judicious and smart planning of finances for a lifetime. Lastly financial planning is not an end but a means to an end of financial stability and security.
The need for no financial planning is complemented with the myth especially among the young that their retirement is far away and they could easily plan for it just a few years in advance. To further complement this myth that our ancestors would leave behind estate and property for us to enjoy with a will.
Well dear friends financial planning can never be overlooked as finances invested well today could provide for good financial resources in future. It is true that a person who helps himself succeeds best in having financial stability in life.
Have a look at the myths of financial planning:
- “I have life insurance to protect them in case of my death.”
- “I just make both ends meet, where is the need to go in for financial planning?”
- “My financial planning is done as I have invested in different schemes.”
All you are investments are really supporting your financial goals or not? Is the schemes in which you have invested is really performing or not? Is the maturity value from the schemes is sufficient to meet the goals or not?
A financial need analysis to cover various short term and long term needs could be best accomplished with a financial expert’s advice on financial planning.
- “Youth is to enjoy, retirement is far away. It will look after itself.”
Saving for retirement starting from youth through retirement plans seems much easier when the amount to be put aside for the corpus is much less every year and it is also possible to save through various investment avenues. Starting to invest for retirement when young gives one the advantages of compounding of savings. This would also help take care of inflationary tendencies.
- “I have enough health insurance, and my company gives me coverage too.”
Being young does not prevent you or any of your family members from getting a critical illness with the present lifestyle. With fresh insurance coverage over the age of 45 being tough it is best to save for this period.
- “I do not have to worry as I will inherit from my parents as my children will inherit from me.”
Financial planning is not just the forte of finance professionals alone, but is judicious and smart planning of finances for a lifetime. Lastly financial planning is not an end but a means to an end of financial stability and security.