A Beginner"s Guide For Financial Planning
The irony of the situation is that they do not like to be dependent on others for their living after retiring either.
In simple words, financial planning is very important for enjoying your post professional life.
In this article, I would like to provide you with some inputs to help you prepare a plan, which will almost decide your financial future.
Is your plan flexible for changes? To start with, you'll need to remember that the plans which you create will need to be flexible for changes depending upon the future circumstances.
As you taste more and more success in your life, it is more likely that you'll set bigger goals for yourself.
Some of the ideas presented in this article might not hold good for all contexts, and in such cases, you will need to customize your plans according to your specific needs.
Where do you see yourself down the line? As with any forecast or plan, defining the goals would be your primary step.
Therefore, you will need to list out all the things which you desire to achieve in your life.
This step can become a little complicated if you have not given much thought about your future economic status before.
Writing down or keying down your goals is very important.
Make sure that you do not skip or overlook any of your goals, if you really desire to live your life to the fullest.
Some of the important parameters to be included in your goals would be your occupation, your house, your lifestyle, your insurance, your retirement and so on.
Talking about occupation, do you see yourself working in the same place where you are working now, or are you contemplating growth in your existing profession, or are you planning to quit your job and start a business of your own.
Do you want to create openings for a stream of passive incomes to flow into your bank account? You will need to decide on the kind of lifestyle which you would like to lead even after quitting your profession.
What kind of a house do you want to live in and what kind of vehicles would you like to drive etc.
All these goals can be satisfied only with money and therefore it is quite important for you to understand and estimate their costs with respect to your income streams.
How do you plan to see yourself there? Dreaming big is really healthy, but at the same time, you'll need to be relentless and put it in your efforts to convert your dreams into reality.
Firstly, you will need to analyze if your existing incomes are capable of helping you realize your goals.
Obviously we will require more inflow of cash in order to achieve our heartfelt desires and goals.
At the same time, many people actually lose money trying to make money.
You cannot overlook that risk factor either.
One of the most popular means among people for increasing the existing incomes is by pursuing higher education in order to fit into the higher paying jobs-roles.
Many people believe in investing in the stocks, bonds, property, mutual funds, precious metals etc to increase their incomes or profits.
Conclusion: Your financial plan is basically a document which you will need to create by being realistic and creative at the same time.
Your plan will be something which reflects your farsightedness and your vision.