Personal financial planning 
February 9th, 2010
| Tags: 12 month personal cash flow statement template, Cash Flow Statement, College Costs, computers internet blog, Credit Card Debt, Debt Retirement, Employment Income, Financial Balance, financial crisis loans, Financial Goals, Financial Planners, Investing In The Stock Market, Leave a Comment loan, Personal Assets, Personal Balance Sheet, Personal Cash Flow, Personal Finance, Personal Financial Plan, Personal Financial Planning, Personal Financial Situation, post crisis loan, Setting Goals, Sheet 50 in the Personal Financial Planner, Student Loan Debt, Typical Goals, Unnecessary Expenses
A key component of personal finance is financial planning, a dynamic process that requires regular monitoring and reevaluation. In general, it has five steps:
- Assessment: One’s personal financial situation can be assessed by compiling simplified versions of financial balance sheets and income statements. A personal balance sheet lists the values of personal assets (e.g., car, house, clothes, stocks, bank account), along with personal liabilities (e.g., credit card debt, bank loan, mortgage). A personal cash flow statement lists personal income and expenses.
- Setting goals: Setting financial goals helps direct financial planning. Examples of financial goals are: “To retire at age 50 with a personal net worth of $800,000 American,” or “To buy a house in 3 years paying a monthly mortgage servicing cost that is no more than 25% of my gross income”. It is not uncommon to have several goals, some short term, and some long term.
- Creating a plan: The financial plan details how to accomplish your goals. It could include for example, reducing unnecessary expenses, increasing your employment income, or investing in the stock market.
- Execution: Execution of one’s personal financial plan often requires discipline and perseverance, and many people obtain assistance from professionals such as accountants, financial planners, investment advisors, and lawyers.
- Monitoring and reassessment: As time passes, one’s personal financial plan must be monitored for possible adjustments or reassessments.
Typical goals most adults have are paying off credit card and or student loan debt, retirement for yourself, college costs for children, medical expenses and estate planning.
Powered by: http://ResourcesMix.info
Incoming search terms for the article:
- post crisis loan (2)
- 12 month personal cash flow statement template (1)
- computers internet blog (1)
- financial crisis loans (1)
- Leave a Comment loan (1)
- Sheet 50 in the Personal Financial Planner (1)
Whether it is a teaser rate or hidden fees on balance transfers,you want to read all of the fine print before taking advantage of any credit card.
Thanks for the post I really need to know this. It’s very informative.
Very informative post. According to me setting goals and creating plan is the perfect way for planning.
Thank you for you great post