As we have plan to our future, financial planning will be a crucial path for us who only have a limited income.We have so many goals in life such as buying a home or sent our kids in university. In order to achieve that goals in a certain time frame may saving will not enough. You need to invest.
Financial Planning is the launching pad for successfull investing. Yous should ensure that your money will give you the maximum possible return. A good financial plan keep you focussed to achieved your goal
What must you do?
1. Identifying your goals
Define your personal goal clearly. Such target more easy to identify when it related to your goal of life. For example, to send kids to university.
After that estimate how much money you will need to achieve them
2. Evaluating your financial status
Analyze your financial need, commitment and debt against your present income just to make sure you have a sufficient fund for your investment.
3. Setting a realistic target
After you know your financial status you can begin to set a sensible an realistic target between time frame that you have for attaining the desired result. Don't put too high target if you only have a short time frame.
4. Choose suitable investment strategies and products
If you put high target you can choose investment with high return income, but remember, high return will give you high risk too, moderate risk investment only give you moderate return too. Just considered a comfortable level of risk that you are prepare to take in case your investment fails.
5. Monitoring your financial Plan
Review your financial situation (which includes change in needs, commitment and investment) regularly. This is useful to make a necessary adjustment to your spending, saving and investment
Just in case you got a problem to make your own plan, you can ask for help from financial planner, who will give you advise some strategies to achieve your financial goals
LIZZIE
May 2, 2009 at 6:40 PM
This is a very informative post. Thanks for putting it up. *^_~*