Finance Planning: If you managed to introduce tips on the competent management of your personal budget into your life and you are good at taking into account income / expenses, then it’s time to go further – to realize more “expensive” needs, and maybe even dreams. To do this, you will need to plan personal finances and draw up a Personal Financial Plan.
Personal Finance Planning: What is LFP
Personal Financial Plan (LFP) – a document that cannot be drawn up without knowing your balance sheet, budget and future plans. One of his main tasks is to answer the question “How much money do you need for happiness?”.
What do you usually do when money appears in your pocket? Spend everything without a trace right away? It is in such situations that awareness helps, which is exactly what personal finance planning gives.
When you do not have a clear financial goal written on paper, you do not have a law by which your money should live. And they should serve you, protect you, and not leave you faster than the speed of light. Money under control, under control is another function of the Plan.
And finally, the risks. Tell me, do you now feel financially secure? What will you live on if you suddenly lose your source of income, or in the country there will be another economic upheaval, or your health will fail? Of course, I don’t want to think about it. But even an American entrepreneur, investor, millionaire Robert Kiyosaki in his book “Conspiracy of the rich” wrote: “Get ready for bad times and you will only experience good ones.” In other words, in the absence of personal finance planning, if not now, then in the future you will still encounter money problems.
Why is LFP needed? It helps to find free money and invest it in such a way as to save, increase and achieve your financial goals in the time you need.
Personal Finance Planning: 11 tips for making PFP
So, we found out that the Personal Financial Plan is your program of actions with money for the N-th number of years before reaching your financial goals. And so that it will surely come true, follow the tips described in this article.
Personal Finance Planning:
Read the book by Vladimir Savenok “How to Draw Up a Personal Financial Plan”.
Personal Finance Planning: Types of LFP
Personal Finance Planning: 11 Best Tips. There are three main types of Personal Financial Plans. Each of them can be included in one way or another in yours, but at the same time it cannot be realized earlier than the other. These are “security” (the so-called minimum program), “comfort” and “wealth” (maximum program).
Tell me, how much can you survive if right now (God forbid, of course) you lose your permanent income, lose your ability to work, or a natural disaster occurs? What will you feed on in old age? A financial security plan is your strong foundation, your minimum program. These include:
– insurance of all types of property, including accumulative life insurance instruments;
– creating your own “airbag”, the size of which should provide you for at least six months;
– Pension program – a long-term deposit that allows you to feel protected when you can no longer work actively.
Personal Finance Planning: 11 Best Tips. This is a well-known program “car, cottage, apartment, vacation with the whole family once a year.” Here, too, money is needed and it is better to save it in advance. For example, you decided to change the car in five years.
So during this time it is necessary to collect such an amount that the cost of the old car and your savings are the price of a new one. Another important point here is the education of children.
Everyone wants to provide their offspring with the best training, and besides this, their own roof over their heads … You need to think about it now. Especially if you dream that your child will study at a prestigious university, or even abroad. Here it is necessary to calculate by what date and how much money will be needed.
Personal Finance Planning: 11 Best Tips. This type of financial plan involves the creation of passive cash flow, investment assets, own business and the acquisition of real estate.
Personal Finance Planning: 11 Best Tips