Simple Steps For Personal Finance Planning

Personal finance Planning – Taking management of your personal finances and deciding to require responsibility for your own money future could be a huge step for many folks. sadly being accountable means if you get it wrong there is no-one else accountable. therefore let’s explore the foremost possible outcomes.

Firstly, no-one else goes to worry concerning what happens to your cash quite you are doing, right?

Secondly, there’s a tremendous feeling that comes with reaching your money goals and objectives when you’ve got planned and implemented everything yourself.

Thirdly, to reach a point where you have gained financial independence means that you have had to educate yourself, do things outside your comfort zone, make mistakes and have exhilarating wins – all of which add to your personal development.

Fourthly, becoming independently wealthy gives you time to do the things you want to do, with the people you love, whenever you want to. Many financially independent people become very philanthropic both with their time and their money – a great feeling!

That being said you really don’t need to spend vast amounts of money getting advice from a financial planner if you want to be independently wealthy. Let’s just define what that means. To gain financial independence means that you no longer depend on a JOB (Just Over Broke) to provide your desired income. Your assets and investments provide for your lifestyle on an ongoing basis.

The next step is to make your income passive. In other words, your assets and investments keep paying you even if you’re not around – you don’t have to do anything (except oversee) to have the money continue to come in and grow. Now this may seem like a dream to most people, but it can be done. It’s just that it does take dedication and disciple in the beginning to get things moving in a positive direction. The hardest part is making a firm (set in concrete) decision to become a wealthy person. Then all you have to do is remind yourself of your commitment.

That is why I say you don’t need hand over a lot of money to a financial planner. For one thing, they can’t make that decision for you. And secondly, if you want to become independently wealthy why would you take advice from someone on a salary? Are they independently wealthy? Are they financially free? I don’t think so. Find yourself a mentor – someone who has achieved the things that you want to achieve. Then find out all you can about them and start doing what they do.

You also need to take a hard and clear look at your current financial position.

What debt do you have? Now there’s good debt – debt on assets that go up in value and/or produce positive cashflow eg. Property, shares etc. and there is bad debt – debt on items that go down in value and create negative cashflow, such as cars, furniture, credit cards etc.

What income do you have? This can be from a job or assets. Can it be increased?

What outgoings do you have? What money is going out each month and can it be reduced?

If you’re serious about creating a personal finance plan for yourself and your ultimate goal is to be independently wealthy you need to always be absolutely honest with your figures and estimation. You also need to get all your information into a spreadsheet and update it monthly. There’s nothing better for keeping on track with your goals than seeing some positive movement, even if it is small.

To summarize, the first simple action steps you need to take with your personal finance planning are:

1. Make a decision to become financially independent and give your word to yourself*
2. Accurately assess your current financial situation and get it on a spreadsheet
3. Find a mentor who has achieved what you want to achieve

When you have taken these simple steps you will feel like you are taking steps in the right direction, and they really are an accomplishment in themselves. Now if you’re serious about it you will either go ahead and take these simple action steps right now or you will mark in a time in your diary to do do it and then do them at that time. Yes, we’re all busy, everyone’s busy. The difference between the busy people that become independently wealthy and the busy people that don’t is that independently wealthy people create plans, commit to themselves* and take action.