Basic financial planningI am often asked “What is basic financial planning?” And the answer is it is different things to different people, but I believe it is understanding what your financial situation is right now and a clear idea of what you want it to be in the future. Rich folks didn’t get rich by accident they planned on it! And don’t tell me it can't be done. I know a woman who has worked as a retail clerk most of her life. She’s in her 50s now, with a fully paid for home and $100,000 in a bank account. The difference between her and most other folks -- she employed a basic plan! I know it sounds trite to say "you need a financial plan", but it is true. Remember a financial plan is simply a map taking you from point A to point B. Let me give you an example of basic planning Buy sufficient cheap term life insurance - when you are in young and in good health. Once you do that your loved ones are secure financially should you die unexpectedly. I can’t set your goals for you, but try to buy your home instead of renting. Py down the mortgage as quickly as you can. If you must rent, start a home based business - (you can do that online for less than $1 per day!) and get all the Tax breaks that are available to you. Take 10% of your after Tax income and put-it-away!!!! for your future! Simply doing this, gives you basic planning, and puts you head and shoulders above most other people when it comes to planning for your future.
Return from basic financial planning to Financial Plan
|
