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Financial Planning Lessons from Republic Day Independence Day

May 6, 2012 By

Article by Ramalingam K

India obtained its independence from British Rule on 15th August 1947. India became independent and wants to develop and prosper with its own decisions.
Constitution
Though we are independent, we were not having our own constitution. Without constitution it is difficult to take the right decisions for growth. So we needed our own constitution which will be the principles and guidelines, based on which we will be able to take the right decisions at the right time. Constitution also deals with the procedures and methodology of taking decisions.
Republic Day
The Constitution of India came into effect on 26th Jan 1950 which we call it as Republic Day. Since 1950 we were able to continuously grow with the guidance from our Constitution. Without an effective constitution, this exponential growth could have become impossible.
Amendments
So far we have made 96 amendments in our constitution in the last 62 years. Amendments make the constitution more dynamic and implementable in the changing times.
Financially Independent
You will be financially dependent on your parents till you complete education. Once you get a job you will become financially independent. You can take your own financial and investment decisions. You may want to financially grow and achieve financial goals like buying a car, buying a property, children education and marriage, and having a comfortable retirement.
Financial Constitution
Do you have your own financial constitution? That is you need to have a set of financial principles guiding you to take the right financial and investment decisions. Without these guiding principles it is difficult for one to financially grow and achieve financial goals. This financial constitution or financial plan details the step by step procedures and methodologies of taking sound financial and investment decisions.
Illustrating a case:
Rahul would like to retire in 25 years. He would like to have (when retiring) investments which can generate lifelong, the equivalent of Rs.50000 per month and additional Rs. 2 lacs per annum at today’s costs.
A Mediocre Approach:
Rahul may choose invest now and then. He may contribute Rs.3000 in one month, Rs.15000 in another month. He may skip investments at times. So his financial picture will not be very clear. He will not know how much he will be accumulating when retiring. He will have insecurity throughout.
Financial Planning Approach:
Financial planning approach has got some principles and guidelines. These principles and guidelines are like a light house for a ship. They give you the right direction at any point in time.
Investment Principles and Guidelines in Financial Planning Approach:
1) A good investment need to generate a decent inflation adjusted return.
2) Not investing in risky avenues like stock market is also riskier.
3) When doing trading, you are not investing.
4) Asset allocation is a proven strategy to reduce the overall risk of the portfolio. Periodically rebalancing the assets will enhance the potential of wealth creation.

In the financial planning approach, the situation will be detailed with more facts. As you have well established procedures and methodologies in financial planning, you will be able to do a sound plan and course of action to be taken to achieve the financial goals.
Present Age 30
Retirement age 55
Life expectancy 85
Expected Annual Income
(Post Retirement in today’s value) 800000
Inflation 6%
Pre-retirement return 12%
Post-retirement return 8%
FV Expected Annual Income 3433497
Retirement Corpus 79582501
Required Annual Investment 596866
Required Monthly Investment 49738

If Rahul is able to invest Rs.49738 per month, he will be able to accumulate the retirement corpus easily.
Alternatively Rahul can start with Rs.22000.per month, and increase the contribution every year by 10%. Even in this method he will be able to accumulate enough towards his retirement.
Amendments Vs Review:
Financial planning reviews are what amendments to a constitution. When there is a change or deviation from our original plan, we need to do a review to control the change. The reviews of financial plan accommodate the changes and deviations and make the whole plan achievable.
When celebrating the Republic Day of our country, why don’t you create your own financial constitution /financial plan for a better prosperity?
Long live Republic.

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Financial Planning Strategies – Face Your Future with Certainty

December 19, 2011 By

Article by P Mata

Questions about job stability, investments, financial security, college, mortgage payments, and retirement planning fill the heads of millions of people, and for good reason. It is perhaps due to the multiple scenarios that might happen in today’s economic environment that have many American households feeling plagued by fears about their financial futures. Probability is a way of expressing knowledge or belief that an event will occur or has occurred. In the profession of financial planning, we tend to speak about what ‘might occur or happen’ in terms of probability.

EQUANIMITY is defined by Merriam-Webster’s dictionary as having an evenness of mind especially under stress.

When it comes to building a secure financial future for the average investor, equanimity is possible; in fact, there is a proven process for going beyond probability to certainty. This level of certainty is where your mental state of being is considered to be one without doubt. With careful management and planning of financial assets, one can greatly affect the well-being and happiness of the entire family. There is no better way to ensure a lifetime free from worry and a retirement enjoyed in fiscal security than procuring the advice and assistance of a highly-skilled, trusted financial advisor. It should be noted that building wealth with certainty is a proactive process that requires your full attention and cooperation at every step. Let’s lay the foundation by reviewing some of the fundamentals inherent in having a winning financial planning philosophy.

The Value of Asset Protection Planning

Working hard and investing well can amass wealth, but to enjoy your wealth and nurture its growth, you must protect it. Asset protection planning is the process of investing and distributing your wealth to protect it from possible future judgments or creditors that may attempt to lay claim to your hard-earned nest egg. By establishing trusts, planning your estate, and developing a proactive plan for strong and secure investments, your advisor can help ensure that you have the layered protection required to keep your wealth safe. Throughout this entire process, a financial advisor is more than a professional, but becomes a confidante in whom you develop trust. Over the course of decades, your advisor will counsel you and watch over your wealth with a zealousness and care that mirrors your own.

How Does it Work?

Consider the immense effort that you have expended to build your business, earn your salary, or build your stock portfolio. A single unforeseen event, even one with only a distant relationship to your business or job, can unleash a string of creditors attempting to collect money, and your wealth may rest directly in their sights. Based on the nature of your assets, your advisor crafts an asset protection plan by leveraging different practices, from establishing trusts and structuring the proper business formation to tax planning and distancing your wealth from the reach of courts or collection agencies. By using the law to your advantage, your advisor can make it difficult, if not impossible, for any creditor to take control of your assets. Ultimately, the creditors or fraudsters will abandon their pursuit of your wealth, trying to find money elsewhere while leaving your assets untouched.

Certain Wealth Creation

This close relationship with your financial advisor also offers the certainty of wealth creation, even in a shaky and often tumultuous economy. One of the hardest parts of building personal wealth, regardless of income or general expenditure, is the uncertainty about the best ways to invest hard-earned money. With the state of the market and the news about financial institutions across the nation, how can you know for certain that your money will be safe and that it will reap dividends on your investments? Asset protection not only establishes your wealth safely out of the line of fire of creditors or unnecessary risks, it also diversifies your assets and allows you to invest in areas with strong yields and certain returns. With this sort of preconceived and thorough plan to enter the marketplace at opportune times, you can rest comfortably in the knowledge that your widely-invested portfolio will reap rewards for you and your children for many years to come.

Track your Progress toward your Goals

A strong financial plan, in addition to creating wealth and protecting it, will help you keep track of it. Few things are more difficult than coordinating vast sheets of numbers, and with data as important as your finances, you do not want to misplace this vital information. The best financial advisors will help you create a single cohesive plan and portfolio snapshot of your investments and bill payments. With today’s advanced user-friendly web technology, a good firm will take into account all the variables, using a private, secure, personalized web portal to view all your financial assets. Armed with this accessible and easily-digestible base of knowledge, you and your advisor can leverage the tools to make the best decisions for your future.

Financial planning success lasts a generation, great success lasts for generations.

Asset protection planning is about far more than simply maintaining your wealth or even seeing steady growth over the years. Studies have shown that those who have a written financial plan for retirement feel more confident and ready to enjoy their newfound freedom from the daily routine of a work-a-day job. Instead, it offers a way for you and your family to enjoy your wealth, resting confident in the viability of your assets to support you as you retire and enjoy your golden years. With the lifelong partnership you will have with your financial consultant, a comprehensive approach to finances will reap rewards that you can pass on to your children and grandchildren with confidence. Careful and diligent estate planning is the best way to give your family a perpetual gift of your love and care that will continue to provide for them for years. This is the greatest benefit of financial planning: the knowledge that regardless of life’s unexpected events, both you and your family will have your assets protected and ready to support you throughout your lives.

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Financial Planning : How to Save Money & Stop Spending

December 10, 2011 By

In order to save money and stop spending uncontrollably, a person needs to set up a budget so he can gain a better understanding of how much money they have to spend. Gain a better understanding of where an individual’s income is going with help from a financial services specialist in this free video on saving money. Expert: William Rae Contact: www.hbwfl.com Bio: William Rae has been licensed in the insurance and financial fields for over 30 years. Filmmaker: Christopher Rokosz
Video Rating: 4 / 5

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Exercise Financial Planning for Life

December 7, 2011 By

Article by Kelly Horns

Financial planning is a lot like exercise.You don’t exercise just once and claim good health, nor do you make a financial plan once and claim financial success.A financial planner in Orleans, MA tells clients they have to get their finances in shape and then work the plan.Getting financially fit takes a lot of goal setting, measuring and balancing.

Strong Financial Core

Healthy bodies begin with strong core muscles that support the rest of the body.Successful financial planning is a workout that builds a strong financial core so that everything radiating out form the core is well supported. Your financial core is your budget, but this is not just any budget.This is a budget that has been prepared based on the facts of your lifestyle and incorporating long term goals.

Though it’s good to have a monthly budget to insure the expenses are covered,a budget for life financial planning incorporates life goals like retirement funding.Does your budget have a line for investing money in a retirement plan of some kind? Or does your budget show that every dollar in is then a dollar out paying expenses.

If you have no leeway in your budget and no retirement plan or at least a plan for building a savings account,your financial core is going to be weak.It could collapse at any time when you apply pressure like the weight of an unexpected auto repair or the devastating loss of a job. A financial advisor in Orleans, MA can work with you to develop a budget that can lead to increasing net worth based on your financial goals.

Weighing In Periodically

To lose weight you have to lower your calorie intake below the amount of calories you burn, and weigh in periodically to make sure you are on track.The same is true of your financial plan.It’s important to keep your expenses below your income and periodically check your net worth and progress towards your financial goals.

In other words,consult with your financial advisor in Orleans, MA regularly and review how well you are doing.If your goals need to change because of life changes such as the arrival of the first baby,then make adjustments to accommodate those new long term goals.

Weigh in financially on a month to month basis and see if you have lost any unnecessary financial weight while building a stronger financial base.Life does seem nearly as challenging when you have money in the bank,a plan for retirement and a budget that accommodates daily living expenses and emergencies.

Maintaining Balance

People with modest incomes fall into the trap of believing they don’t need to plan financially. Financial planning is only for the wealthy. Right?

Wrong!

Everyone is the same when it comes to financial planning. You must learn to live within the household income, develop a reasonable and achievable budget that allows for building a savings account, and establish long term financial goals. Whether you make ,000 a year or 0,000 a year – losing excess financial poundage that weighs you down begins one dollar at a time.

Consult with a financial planner in Orleans, MA and get ready to achieve financial fitness.This is exercise you will enjoy and that benefits the whole family.

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A Walk Through Of Financial Planning Process

November 25, 2011 By

Article by Cornie Herring

As an adult, almost every decision you make, mostly has to do with money: your diet plan, your education & career goals, a family vacation & etc, all involve financial planning component to it. Hence financial planning is important to your life; success or fail to plan your financial will impact your life related to money, whether you chase after money (if you are in debt) or you make the money work for you (if you invest your money to increase your net worth).

Many people don’t plan to fail but they fail to plan; either they don’t know the correct financial planning process or they are chartered procrastinators who have thousands of excuses not to get started their financial planning process. Don’t let the procrastination to be your obstacle to get started your financial planning to secure for tomorrow. The bottom line for everyone to plan their financial successfully is to know the process of financial planning and know how to get started; here are six areas of financial planning that we will review together. Please note that these areas are all interrelated. What affects one area impacts the others as well.

1. Goal Settings

In your financial planning process, you can always get started with your financial goals setting. You should make your goals realistic so that they will be achievable. In order to set a realistic goal, you need to know your financial situation and the project future financial ability. Takes out all the important documents such as mortgage agreement, bank account fixed deposit, car loan contract & etc; based on all these information, compile a list of your current debts and assets. And from there, estimate the timeline when you will paid off these debts and make a projection of your future incomes. You set your goals based on these results at a realistic and achievable level.

2. Risk Management

Common method of risk management is using insurance to protect your assets from a loss that you couldn’t afford on your own. Insurance is a financial product that will give you a piece of mind. The insurance company will try to make you whole if you suffer a loss. Insurance coverage for assets, disabilities, sickness and even life is an important element that you should include in your financial planning process to minimize the potential risk of loss.

3. Tax Planning

Are you taking advantage of all tax benefits Uncle Sam has to offer? Although Uncle Sam has always has his hand in your wallet because he wants his fair share, but he also offer tax benefits for you, so you need to know how to take advantage of these benefits. The goal of tax planning is to help you minimize your federal income tax liability as much as you are allowed by tax law while saving for retirement.

5. Retirement Planning

When you are at age 25, retirement will seem so far away. At 25, you will think 60 are old, but when reach 60, you think 85 are old. Retirement planning should begin with your first job. So you need to figure out how much to save from now so that you will reach you goals of retirement later. There is never too early to start planning for your retirement.

5. Investment Planning

In your financial planning process, you should think of how to increase your asset net worth and achieve your financial goals with what you have right now. Investing is a tool you can use to achieve your financial goals that you set for yourself. All investments come with certain risks; you need to understand how much risk you should be taking with your investment to achieve your goals.

6. Estate Planning

Life journey will end one day, but many people try to avoid thinking about. The fact is no one will get out of this world alive, so you might as well plan for it. There is a need to protect your assets from Uncle Sam and to have things get in order for your loving family that you will left behind later.

In Summary

Financial planning is important to your life; success or fail to plan your financial will impact your life related to money. The six areas of financial planning that we just reviewed are all interrelated. Hat affects one area impacts the other areas as well, you should be aware of these areas and ho they impact your financial strategies.

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Financial Planning Made Simple

November 7, 2011 By

A carefree retirement will demand you have a proper financial planning. Certainly you should be sure that you’ve enough money when you will stop working. The most fascinating thing here is to organize your money well. You might for example consider the possibility of investing some of your revenue and simultaneously save part of your income. So as to help you learn more about this I have written this informative article and I hope that it will come in handy for you.

First of all you will have to find some good ways in order to invest your money. Indeed a proper investment plan should make sure that you not only have sufficient money but also multiply your present income. The very least you could do is to spend money on an insurance policy. There’s also some insurance schemes which will provide money to organize your funeral thus assisting your family in this difficult moment. Those that understand French can take a look at this article on death insurance () as it carries some helpful point.

The next thing that you will need to consider is lowering your tax payment. There are indeed some legal methods that exist in order so that you can cut down on your tax payments thus allowing you to try to make some savings. For instance, in certain countries you can receive some tax exemptions if you invest in certain economic sector. You may seek the assistance of a financial adviser in case you are unsure. You can have a look at our French site on tax () because it features some beneficial point.

It is also crucial that you search for ways in order to improve your earnings. You will therefore have more cash for investment and saving purposes. The good thing is that nowadays there are plenty of job opportunities which exist and that will allow you to earn money in the comfort of your house. Interestingly there are a lot of that will help you to get going swiftly. Make sure however that you select something that will help you to cope with your day-time job and not something that will add stress to your life.

Your future life will depend a lot on the financial plan which you make currently. Indeed you should make sure that you have enough money once you will stop working. The good news is that you can find plenty of schemes that exist and that may help you save money for your retirement. It will only be up to you to find the one that really suit you in order to make sure that you have a suitable income during your retirement. I really hope that you have enjoyed scanning this article and that you will make the most of the tips offered in this article.

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Financial Planning Education

August 12, 2011 By

Taking financial preparing training in addition to your present course is yet another plus element in your résumé. Employers are normally intrigued in selecting folks with additional academic achievement. This is specially genuine if you are a graduate of a selected program involving fiscal organizing education. 

Primarily based on data, most multinational firms retain graduates of monetary arranging education and learning courses. Pros who have taken monetary organizing education courses oversee the preparing of company’s fiscal reviews, money flows and finances. These reports are typically too problematic to manage or prepare by individuals without having backgrounds in economic arranging education. Primarily, the perform requires amounts and financial analyses. 

Monetary preparing education graduates are typically designated as economic managers. As economic professionals, they have sufficient understanding in organization transactions concerning consolidation, merger or enlargement. Surveys present that a few out of 10 financial managers function in corporations these kinds of as investment companies, banking institutions, lending companies, credit unions and insurance companies.

In purchase to turn into a fiscal manager, economic planning education will occasionally suffice. In some circumstances even so, organizations desire people with master’s degrees in the area of organization administration, economics, finance or chance administration. 

Aside from getting a career, individuals with monetary planning education and learning are able of using their information in establishing their personal corporations. They have far better tips in the formation and operation of company like exactly where to get further funds as aspect of their current operating capital. All these ended up taken as portion of their curriculum in monetary organizing education mixed with real work experiences. 

In the present economic condition in which most employees are jobless, obtaining another course is an benefit. Typically, employers would like to hire personnel who can execute different employment. It is never also late to enroll in yet another study course especially now with the presents of on the internet education. Some universities and schools have adopted their campus kind of learning by means of on the web schooling. This is to attain out to people who want to pursue greater schooling with out the require to leave their current work. 

Though the present economic system is at its very low stage, it is expected to rebound in the around long run. This will be an option for those individuals who have taken an extra course like monetary organizing schooling. This especially will be quite essential to most businesses in the decades ahead. Businesses will now depend on their fiscal professionals to decide whether or not the firm is producing profit or not. The role of economic managers will be extremely crucial considering that they can make sound recommendations primarily based on real information and sensible observations in relation to enterprise operations. 

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Financial Planning- A Planning to Achieve One’s Financial Goals

July 8, 2011 By

 While one cannot predict the future,one should certainly be better prepared for it as all of us have our goals to be fulfilled at every stage of life and these goals will only be achieved if one has done the financial planning. So, its better to start planning now as prevention is always better than cure. Financial planning is a systematic approach whereby the financial planner maximizes customer’s existing financial resources by using the appropriate financial tools and investment vehicles to best achieve his financial goals and objectives.

In other words, financial planning is the process of meeting once life goals through proper management of one’s finances. Life goals can include buying a home, saving for children’s education,buying a car, protecting family against financial risks or planning for retirement. The need for financial planning arises from the need of meeting the financial goals of one’s life & it is financial planning that helps us to take a comprehensive look towards one’s futures financial needs and goals including cash flow, debt management, education funding, retirement planning, estate conservation and portfolio management. Financial planning gives you the direction to make informed decisions about your investments so that you won’t make any mistakes and you can reap the benefits of your financial planning for the rest of your life.

 Financial planning is simple mathematics. There are 3 major components :

Financial Resources (FR)

Financial Planning Tools (FT)

Financial Goals (FG)

 When you want to maximize your existing financial resources by using various financial tools to achieve your financial goals, that is financial planning.

Financial Planning : FR + FT = FG

Benefits of Financial Planning:

Financial Planning ensures that the right amount of money is available in the right hands at the right point of time in future to achieve specific Financial Goals. Virtually anyone with moderate wealth or a decent income can avail the benefits of financial planning like:

Financial Planning is based on individual risk profiling, and it provides a road map to achieve financial goals

Financial Planning helps you take a ‘big picture’ look at your financial position and it guides you to examine your current financial status and determine objectives.

It helps in devising a strategy or plan for how you can meet your goals given your current situation and future plans. It also identifies weaknesses and recommends improvements.

It puts in place the risk management system to meet uncertainties of life through efficient Insurance Planning, Tax Planning and Estate planning.

Financial planning is the process of managing your money to achieve personal economic satisfaction. It allows you to control your financial situation and provides a feeling of security and less stress.

It is a disciplined approach to managing your finances to reach life goals. It involves systematic & disciplined investment mechanism, which helps in creating wealth over a period of time. It helps you to become more responsible towards disciplined investing.

Financial Planning Process:

The Financial Planning Process consists of six steps, using which, you can work out where you are now, what you may need in the future and what you must do to reach your goals.

Step 1: Determine Your Current Financial Situation

Step 2: Develop Financial Goals

Step 3: Develop financial planning alternatives

Step 4: Evaluate Alternatives

Step 5: Create and Implement a Financial Action Plan

Step 6: Re-evaluate and Revise One’s Plan

Financial planning, especially at an early age can help to give your life focus and help you to achieve your goals in life. So, start your financial planning today and fulfill all your dreams & goals of life without any hassles.

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financial planning

July 8, 2011 By

Article by Sapphire Broking

The importance of financial planning cannot be highlighted enough. “If you fail to plan, you plan to fail!” as the saying goes. Yes, we need to be realistic here. If we don’t implement the plan we’ll never get to our destination.
It’s like that day dream about the ultimate pacific island holiday I’ve had for several years. Fortunately, I did act and that day dream of mine is now a wonderful lifestyle and travel memory.
The importance of financial planning is captured in the list of actions a plan defines. The actions that will lead you to your financial goals. So, nothing is more important than to carry out what you have designed.
If you have a holiday plan, act on it! – If you have a financial plan, implement it!
Try and substitute acting for planning for a little while and I’m sure you’ll get the idea.
Planning is not a theoretical exercise. It is the designing of practical steps with strategies and solutions that will take you to your financial goals. Strategies and solutions are only vehicles that will take you there.
When we first draw up a plan we need to consider some important factors:
What are your real financial needs?
What is your financial mindset and behavior?
How to use cash flow to your advantage?
How to make money grow?
These factors illustrate the importance of financial planning in a nutshell. They are the keys to financial planning and we’ll talk about them individually.
Managing the funds to your advantage
What do we actually do with money? – We spend it.
In what way do we spend it? – Hmm, let’s see.
We spend money because we have needs. Some needs are real needs; others are just perceived needs or desires. Just to keep it simple, we’ve split these needs into two categories which apply to most of us:
basic lifestyle needs
luxury lifestyle needs
The importance of financial planning is such that we must identify what our financial needs are in our financial plan.
Basic lifestyle needs are all the essential things that you must have such us shelter, food, clothing, health, education, etc. to maintain your usual lifestyle. If your finances satisfy these needs you will be able to keep going without major financial concerns.
It is important that your income meets all the costs for basic needs otherwise you’d have more money going out than coming in. This could mean applying for government support, or worse, bankruptcy. Naturally, you want to have enough money to be able to pay your bills on a regular basis.
Luxury lifestyle needs are those things that are not essential anymore. This is the category that allows you to buy fun, holidays, entertainment and so forth. Simply put, you want more than basic. You want to have a good time too, go out and dine, enjoy a movie or a concert, see foreign people in foreign cultures, visit family and the local community.
This is possible when your income meets all your basic needs and on top of that you have spare money (surplus) with which you can afford extra things. In other words, you get a life. If you think this is all too simplistic – think again.
This is what makes money and the world go round.
There are things that money can’t buy, of course, and we shouldn’t forget. No matter how much or how little money we have, we cannot buy true Happiness – but that’s for another time.
The importance of financial planning is such that a financial plan gives you control. The key to meeting all the basic and luxury needs is to control them so that your income meets or exceeds your expenses. We need to twist this spending spiral and develop a mindset that allows us to control the seemingly uncontrollable outflow of earnings and keep more in our pockets after every pay day.
This also depends on our personal money management habits if we can achieve this or not. With the right mindset, however, that should come naturally.
We need to Develop the right financial mindset
We could go on to break both categories of needs down into many more sub-categories like we’re doing in a full financial planning analysis. I’m sure you’d know many of them already. The point is that we all want to make money and we need to develop a financial mindset that allows us to do so.
At the very start this is simply a question of:
Basic or Luxury?
In whatever I do financially, I always ask myself the question: “Is this expense basic or luxury?” – Got the idea? This then allows me to make a careful buying decision and I won’t spend all my income anymore.
The whole mindset is focused on creating money that is surplus at the end of the day. You can also call it your savings behavior.
The importance of financial planning is such that a financial plan assists you in keeping a focused mindset when it comes to money. With this you’ll get into the right financial habits.
We develop a financial mindset that allows us to save money and then are able to make more of it. Once we’re in that position we can start investing and create income that is coming from assets rather than from our job.
In essence wealth creation is focused on:
Building investment assets from surplus money to create additional sources of income that over time replace the your salary or wage from your own job.
This is also called Financial Independence, i.e. you do not depend on your income to be able to have a life.
We can also take this a step further and you will end up with surplus money for which you do not have a specific purpose. Once we reach that stage we’ve achieve Financial Freedom.
The importance of financial planning is such that a financial plan visualizes how to get to financial freedom. Without a plan it will only remain a distant blur.
Importance of creating cash flow
Cash flow is the hub of all money affairs and underlines the importance of financial planning even more. A person, a couple, a family, a business or an investment firm, they all need cash flow to operate successfully. You could be the richest person in the world by wealth but if you don’t have cash flow you won’t be able to survive.
We can use cash flow to our advantage. Cash flow is something that allows us to save more money in a more powerful way than the old piggy bank because the income can not only come from my job but also from any other sources of income such as investments. This is then called positive cash flow.
There are different ways how you can save and boost your positive cash flow:
regularly put aside a set amount from your wages
curb your spending and each time you want something, think twice before you buy
look for that bargain; buy bulk or discounted products if you need to buy at all
divert any extraordinary income such as bonus or commissions from work into your savings account
make it a habit to park your tax refund in your bank account and do not treat it as a free holiday
be money smart and invest to collect further income benefits and/or tax concessions
The main purpose of this list is to remind us where it all starts. It starts with savings. Savings that then are turned into cash flow which in turn goes into wealth creation.
Of course, there is the odd lottery ticket that takes care of it all. Luck of the drawer is important too. Some people are luckier than others but we cannot plan for it because it’s random.
A financial plan is not random. It gives you control and focus until you have reached your goals; and everyone can make a plan.
The importance of financial planning is such that we now have a financial plan with which we control our needs and spending and redirect surplus cash flow to wealth creation.
If you can plan and are lucky too you’ve hit the jackpot twice. If that’s you, by all means, enjoy the ride.

Sapphire broking & events wish you will be to know the importance of financial planning with above information.

SAPPHIRE BROKING & EVENTS
http://www.sapphirebroking.com

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Financial Planning

July 6, 2011 By

There are two kinds of People, first are those who do not know where their next pay check is coming from and the second are those who know where their next pay check is coming from.

Planning Financially is must for everyone from the lower right up to the Upper Class.

It has has been taught to every child, even you! Remember your Mom telling you don’t buy this don’t buy that it’s not good for you and stuff?? Yes! That was one of your important lessons.. But we as children ignored the important lesson and ran out and bought sugary candy which just made us Nuts and eventually drove our Parents Nuts (If you are laughing now don’t forget you will have kids of your own)

The Ideal expense to pay check ratio would be 1 : 2 or even better 1 : 3 and so on.

Every Company aims for it and so should you!

But unfortunately not many get it that way.

But roughly even if you are saving 1/3 of your pay check you are doing well enough.

People are spending a lot on Consultation, getting people to help balance their lives.

Don’t forget you got to pay people for Financial help!

So instead of paying someone for a solution here are some rules, to keep your self balanced and live a Happy Life.

MUST-DO List for a happier life

Financial Planning rule no. 1

STOP using Credit Cards:

As convenient as it is, it’s an added expense and a very good reason to spend money. Only use Credit Cards where necessary. Consider this step as a bad habit and drop it where Financial Planning is concerned.

Financial Planning rule no. 2

Get rid of your Loans:

This is must you have no idea, how light you will feel.

Speak to your Bank and pay more to get rid of them faster.

Rule no.

3

Buy in Bulk:

When you buy grocery in bulk not only you get them cheaper you can use them for longer. For e.g. you use 3 soap bars in a week instead of getting just 3 next week, get a pack of 10 you will get it cheaper plus you will save time and money to go back to the Store the following week. Use this Financial Planning rule where ever possible.

Financial Planning rule no. 4

Cut down on luxuries:

You don’t need to eat out everyday, Cook at home sometimes, its healthy (that’s if you know how to cook) and cheaper, Apply this Financial Planning rule where ever possible.

Financial Planning rule no. 5

Get to the 1 : 2 Ratio:

Try as hard as you can to reach to this ratio, earning at least twice as much as your Expenses. This step is a very important step in Financial Planning!

Financial Planning rule no. 6

Save money on Gas.

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