Monday, February 21, 2011

Personal Finance | Prepare Your Financial Planning!

Do you have a plan for your financial planning? Maybe people thought that financial planning is not suitable for those of you who have low income and it is only suitable for those who are rich or large corporations.

If you think so, you are actually wrong!

You need to have financial plans if you want to achieve financial freedom is holistic. Those who have financial plans with clear goals and always strive to improve the weaknesses that exist throughout their financial management.

Here are some tips that can help you:

1. Define your goals.
At least, you must have a goal in your financial planning. For example, you want to achieve financial independence within 10 years and have savings of $ 500,000. Better yet, you should include in the plan of action to achieve those goals.

2. Know how your income and expenses.
You must know how your income and expenses. It is intended to prevent you from spending more than income. Instead, record all your income and expenses using a lot of financial software on the web.

3. Know how your assets and liabilities.
All people have the assets but not many are aware that they also have obligations. What you should do is list your assets and liabilities. If assets exceed liabilities, you may be facing financial problems. But if the liabilities exceed the assets, this means you are in danger.

4. Have a sufficient emergency fund.
As I have said in previous article, you must have an emergency fund of at least 6 months before you act to make any other investment. The purpose of this emergency fund is to cover your expenses for 6 months later if the dismissal.

5. Pay your debts as quickly as possible.
Right! You have to pay your debts as quickly as possible. As long as your loan is completed, you will not be comfortable. Start with a complete debt and low interest rates, followed by higher interest rates.

6. Increase your income.
You can start a business such as internet business or invest in low-risk unit trusts. In fact, to increase your monthly income, I recommend that you work part time at the convenience store for a while to get enough capital to open a business or invest in the stock market and unit trusts.

Once you have planning your financial future, make sure you always check and review from time to time about whether the financial position you have a good change or not.

p.s: Share your opinion by commenting on this article.

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