Have you heard? Intelligent investors are moving the market
PLAN YOUR FINANCES
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Courtesy: StarTwo/ Lifestyle Monday 3 october 2005
Contrary to pouplar blief, financial planning is not only for the rich. In fact, financial planning can be mroe crucial for an average wage earner who has limited income and financial commitments, but wants to achieve his goals in life. Such goals include buying a house in five years' time, sending his children to university in 10 years' time and retiring comfortably in 20 years' time.
In order to achieve your goals within a certain time frame, saving money alone may not be enough. You need to invest. Good financial planning helps you balance your income against your needs and commitments.
It allows you to obtain a clear idea of how much and to what extent you should invest.
Financial planning is the launching pad for successful investing. As an investor, you should ensure that your money is working hard to bring you the maximum possible returns. To achieve this, youwill first need to set clearly defined targets for your investments.
Such targets are often more easily identified if they are related to your goals in life. A financial plan keeps you focused and on track in achieving your financial goals.
The process of developing a financial plan typically involves the following steps:
Identifying your goals
Define your personal goals and estimate how much money you will need to achieve them.
Evaluating your financial status
Analyse your financial needs, commitments and debts against your present income to determine whether you have sufficient money for investment.
Choose suitable investment strategies and products
Investments with high returns come with high risks. Before making any investment, you must determine a comfortable level of risk that you are prepared to take in case your investment fails.
Monitoring your financial plan
Review your financial situation (which includes changes in needs, commitments and investments) regularly. This enables you to make necessary adjustments to your spending, savings and investments.
You may plan your finances on your won or seek professional advice from qualified financial planners.
"Your financial planner can help to articulate and prioritise your goals in life, given your current stage of finance, and draw up a financial plan"
Once a financial plan has been drawn up, the financial planner will suggest investment stratgegies to help you achieve your financial goals - for example, reduce spending, and increase savings and investment. "
A financail planner is not in a position to advise you what stocks or investment products to buy,"
"His or her role is to lay all the available investment strategies on the table and advise you on the risk and returns pertaining to each strategy. No responsible financial planner will try to force you to part with your money or make decisions on your behalf. Product selection or choice of investment is upto you"
Providing the right information allows your financial planner to do a better job for you. Investors need to be open when sharing ehri financial details with financial planner. "It's very natural for investors not to divulge too much information to a stranger. But themore information you give your financial planner, the better he is able to tailor-make a good financial plan for you. Trust and openness must run both ways."
The financial planning process can benefit anyone regardless of age, education or income. Even if you are not ready to invest, consulting a financial planner canhelp you realise how much money you need to achieve your goals in life.
Having a financial planner is like having a good adviser to help you make good decisions.
Essentially, financial planning ia bout wisely allocating your hard-earned money to achieve your goals in life. no matter how much or little you have. It is something not only for the rich. It is for everyone and it is crucial for any investors who want to invest intelligently.
Click here to jump to my another blog page
Courtesy: StarTwo/ Lifestyle Monday 3 october 2005
Contrary to pouplar blief, financial planning is not only for the rich. In fact, financial planning can be mroe crucial for an average wage earner who has limited income and financial commitments, but wants to achieve his goals in life. Such goals include buying a house in five years' time, sending his children to university in 10 years' time and retiring comfortably in 20 years' time.
In order to achieve your goals within a certain time frame, saving money alone may not be enough. You need to invest. Good financial planning helps you balance your income against your needs and commitments.
It allows you to obtain a clear idea of how much and to what extent you should invest.
Financial planning is the launching pad for successful investing. As an investor, you should ensure that your money is working hard to bring you the maximum possible returns. To achieve this, youwill first need to set clearly defined targets for your investments.
Such targets are often more easily identified if they are related to your goals in life. A financial plan keeps you focused and on track in achieving your financial goals.
The process of developing a financial plan typically involves the following steps:
Identifying your goals
Define your personal goals and estimate how much money you will need to achieve them.
Evaluating your financial status
Analyse your financial needs, commitments and debts against your present income to determine whether you have sufficient money for investment.
Choose suitable investment strategies and products
Investments with high returns come with high risks. Before making any investment, you must determine a comfortable level of risk that you are prepared to take in case your investment fails.
Monitoring your financial plan
Review your financial situation (which includes changes in needs, commitments and investments) regularly. This enables you to make necessary adjustments to your spending, savings and investments.
You may plan your finances on your won or seek professional advice from qualified financial planners.
"Your financial planner can help to articulate and prioritise your goals in life, given your current stage of finance, and draw up a financial plan"
Once a financial plan has been drawn up, the financial planner will suggest investment stratgegies to help you achieve your financial goals - for example, reduce spending, and increase savings and investment. "
A financail planner is not in a position to advise you what stocks or investment products to buy,"
"His or her role is to lay all the available investment strategies on the table and advise you on the risk and returns pertaining to each strategy. No responsible financial planner will try to force you to part with your money or make decisions on your behalf. Product selection or choice of investment is upto you"
Providing the right information allows your financial planner to do a better job for you. Investors need to be open when sharing ehri financial details with financial planner. "It's very natural for investors not to divulge too much information to a stranger. But themore information you give your financial planner, the better he is able to tailor-make a good financial plan for you. Trust and openness must run both ways."
The financial planning process can benefit anyone regardless of age, education or income. Even if you are not ready to invest, consulting a financial planner canhelp you realise how much money you need to achieve your goals in life.
Having a financial planner is like having a good adviser to help you make good decisions.
Essentially, financial planning ia bout wisely allocating your hard-earned money to achieve your goals in life. no matter how much or little you have. It is something not only for the rich. It is for everyone and it is crucial for any investors who want to invest intelligently.
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