With much attention being paid to examining what financial markets are, examining how these markets positively and negatively influence our lives, defining money, and comprehending its three functions, it is time to apply the theories learned to practice. Thus, learning how to develop healthy fiscal habits is the pressing goal. In being clear about what you hope to achieve, specifically with regard to personal financial planning, we have to be honest about the consequences sure to be faced should you fail to adopt healthy habits. Nevertheless, as you continue on your journey towards financial independence, it is my fervent wish that you be equipped with the tools to avoid the pitfalls of future financial ruin.
The first step in your journey should be working to define what personal financial planning is, and how you can incorporate this definition into your daily practices. To start, success involves creating solid financial plans and executing goals. To further understand how proper financial planning can affect one’s overall well-being (personal, professional, and financial to name a few), let us explore some tenets of PFP, which include, but is not limited to, manually or electronically creating a budget. Through the utilization of Microsoft Office, Excel to be exact, spreadsheets that clearly outline deposits, withdrawals, and miscellaneous expenses can be created, monitored, and amended. To decrease the amount of time needed to save documents to the desktop, and fail-proof your work from hard drive crashes, Google Drive offers spreadsheets that automatically saves changes as you type. The second step in your journey should soon be centered around reducing the rate of borrowing -- ultimately consolidating debt and finally eradicating debt from your financial life. Again, equipping yourself with a great plan that realistically details the step-by-step processes, and includes drafts of Plans B - Z (should A fail), is crucial. Third, a great financial plan will clearly define prospective investments and and a blueprint for future retirement. Although there is a plethora of information available to assist and guide individuals on the path to financial security, it is becoming harder to practice consumer-friendly habits due to rising costs and rising interest rates. As costs continue to rise, you may find it difficult to actively decrease your rate of spending as costs rapidly rise. Should your decision-making skills be compromised, be honest with yourself about where you fell short and why. Then, problem-solve and brainstorm solutions for success. Suppress your penchant for being dishonest for denial can lead to erratic spending, which will be counterproductive to your goal of stopping blowing through the dough.
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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