Surpass Personal Finance Planning Goals Like A Boss: 3 Financial Planning Tools Must Haves To Unlock Financial Freedom
Some people seem to get it. Most of us have to burn fingers, hell and back, to cut it at personal financial management. That’s because personal finance planning is arduous. To be a master, there’s dabbling in the ill defined – like how to make money from hobbies. There is deciphering of the defined but extensive – like the 101 of trading in stocks.[dropcapW[/dropcap]e all yearn for finance freedom but the depth of the pool is often beyond our skill set. Keeping with the swimming pool analogy, these three must have tools should help with the floating.
1. Personal Development Plans, First Among Equals In Surpassing Personal Finance Planning Goals
A personal development plan (PDP) is a deliberate, structured and documented effort by an individual to bring about desired, envisioned changes in their social, personal or professional life. A PDP is a tool tailor made to suit the individual first and adapts to the individual’s environment.
I would liken a personal development plan to what a business plan is to a start up. It is a worthy framework that fashions how energies and resources are to be engaged. In many ways, a PDP is akin to slogans to live by as in Notorious B.I.G’s The crack 10 commandments – entrepreneurial advice form the world of dealin’.
Like any plan of action, at the heart of PDPs are SMART objectives and a mechanism of evaluation of progress. Being critical of self isn’t the easiest thing, part of the reason why we fail to achieve personal finance planning goals. A well crafted personal development plan numbs this discomfort as it is ritualistic.
2. Importance of a Personal Budget In Visualizing & Actualizing Personal Finance Goals
A budget is a log of one’s income via-a-vis expenditure. A well done personal budget documents how each coin earned is spent. Thus the arbitrary line item ‘miscellaneous expenditure’ that we so love finds no home in a well written budget. Arbitrariness in your personal budget allows for impulsion and other bad traits that derail your personal finance goals.
In spite of the well known benefits of saving, keeping some of money earned ‘for a rainy day’ is still a big challenge to many individuals. Nonetheless, for those who harbor dreams of sharing a table with the likes of Warren Buffet, saving is key to earning this ticket.
To this end, there exists an entire school of formulas that seek to guide personal spending in ways that it leads to realization of personal finance planning goals. Despite their varied formula, the basic premise remains that all monies to be spent should be checked off at the start. This includes savings, investing and retirement money.
All that should be handled like other mandatory expenses like house rent or utility bills. Only a personal budget, and unwavering fidelity to it, guarantees such an approach.
3. Learning the Language of Money, Is Shooting For Financial Freedom
This crucial step does not necessarily imply signing up for night finance class. It involves simple methods like taking time to read and digest business news in the daily, television, Internet and other mass media outlets.
At the start, some of the business terms will fly above your head. But shortly, the money jargon starts to bear meaning. Coupled with the zeal to inquire and seek, it wont be long for the rookie to understand the language of money.
There is no looking back once the rookie d-i-y personal finance manager learns the language of money. They begin to unpack secrets of money and can therefore predict with some accuracy the success and folly of their moves today as patterns start to take shape