Financial Planning Advice for the Average Guy
Andrew Chan
If you are looking for no-cost financial planning advice to aid your financial planning objectives, here are some information to help you get started.
In the first place, many people never reach their financial objectives for a very simple reason - they simply do not have a plan. In some worse case scenarios, they do not even know what they want.
The first thing you may want to change is your mindset and attitude. Start thinking like a financial planner, even if you are not one. This change in attitude alone can make a big difference to how you handle your financial affairs. You may have already heard - 95% of the population in this country (in fact, perhaps every country on this planet) will be poor and broke by the time they reach their retirement age. Sad fact, but the numbers do not lie.
What then could be the problem? It is clear in the majority of cases that this is due to a lack of financial plan and good financial planning advice. And now the clincher... the first piece of good financial planning advice is this - you must actively manage your own finances. Do not ever leave your finances to a financial planner totally. They are proficient at their job but the main responsibility lies with you to actively manage your own investment portfolio. Only then it is possible to have your investments achieve the highest possible return. Quite obviously, this has to be done within the context of your own financial risk appetite.
Ready for some financial planning advice to start working on your financial plan? First and foremost, you should take time out to work out a list of things that you want in your life. These can be "big" luxury items like the kind of house you want to live in, the kind of car you will like to drive, the places you want to go for holidays and so on. Very obviously, you have to also include the usual expenses that you incur each month.
Once you have all these expenses (major and minor) listed out, you will have a good idea of how much income you need to fund all these items. Don't forget about savings and investment as well. Some thinking should go into whether all these expenses are necessary at all. If not, they could perhaps be better used for growing your savings and investments.
Another thing to take note of. Financial planners can be good working partners when it comes to your personal financial planning. Their financial planning advice may not always be no-cost or complimentary (read "free") but the professional ones may be worth the time and money. Remember the saying - "there is no free lunch - still rings true in cases like this. It is sometimes better to spend money on good professional financial planning advice. But, as mentioned earlier, the responsibility of actively managing your own portfolio still lies with yourself.
Simply getting in touch and working with a financial planner can help you sort out your financial affairs quickly. However, it is always better to be financially educated as well. Being financially well-educated allows you to make good and profitable investment decisions. All rich people and the financially independent know at least something (if not a great deal) about investment and making money.
Think about it - virtually all the rich and wealthy are financially well-educated themselves to be able to spot profitable investment opportunities on their own. Most of them are very conscious about financial numbers. If you want to be like them, the fast way to do it is to "model" them. Get involved and be very conscious of where your money is going and coming from. This bit of financial planning advice alone could prove to be very rewarding to your financial health.
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