The personal financial planning process involves the following five steps:
1. Ascertain your current financial resources
2. Define your financial goals
3. Develop systematic financial plan
4. Implement these plans
5. Monitor the results and revise goals and plans whenever necessary
If you have been diligently executing the five steps in the personal financial process, you will achieve better management of your financial resources, improve your standard of living and accumulate wealth over time. These are three key benefits of personal financial planning. Because you consciously think about the goals you wish to achieve and you take to design the most suitable financial plan for each goal, you are better positioned to exploit investment opportunities that may arise from time to …show more content…
We should not entirely depend on employee or government benefits such as permanent salary increases or adequate funding from employer-paid pensions or Social security to retire comfortably. Creating supple plans and regularly revising them is the key to building a sound financial future. Prosperous financial planning also brings rewards that include greater flexibility, refined standard of living, wise spending habits, and increased wealth. Of course, planning alone does not guarantee success, but having an effective stable plan can help you use your resources wisely. Careful financial planning increases the chance that your financial goals will be reached and that you will have sufficient adaptability to handle such contingencies as illness, job loss, and even financial
1. Ascertain your current financial resources
2. Define your financial goals
3. Develop systematic financial plan
4. Implement these plans
5. Monitor the results and revise goals and plans whenever necessary
If you have been diligently executing the five steps in the personal financial process, you will achieve better management of your financial resources, improve your standard of living and accumulate wealth over time. These are three key benefits of personal financial planning. Because you consciously think about the goals you wish to achieve and you take to design the most suitable financial plan for each goal, you are better positioned to exploit investment opportunities that may arise from time to …show more content…
We should not entirely depend on employee or government benefits such as permanent salary increases or adequate funding from employer-paid pensions or Social security to retire comfortably. Creating supple plans and regularly revising them is the key to building a sound financial future. Prosperous financial planning also brings rewards that include greater flexibility, refined standard of living, wise spending habits, and increased wealth. Of course, planning alone does not guarantee success, but having an effective stable plan can help you use your resources wisely. Careful financial planning increases the chance that your financial goals will be reached and that you will have sufficient adaptability to handle such contingencies as illness, job loss, and even financial