Personal Finance Planning


Financial Planning is an ever changing process that investigates your whole financial picture. It involves everything from planning and organizing your income and expenses to savings, investment and retirement planning. This type of Financial Planning is designed to in the end achieve long term finance goals.

Financial Planning involves every part of your financial life, including how you spend and invest your money to how you protect your assets. This plan must be versatile and adaptable to ever changing life events and account for these changes. This type of financial planning is called a Holistic Approach.



Steps to Financial Planning:


1. Make an honest assessment of your goals and expectations (both short and long term)
  • Debt Reduction
  • College Planning
  • Retirement
  • Financial Independence


2. Do an honest assessment of where you stand right now including your assets and liabilities, and debt to income ratio.
  • Current Standing
  • Future Priorities
  • Resources and Time Involved


3. Develop a prioritized plan of action


  Insurance --> Debt --> College --> Invest --> Retire --> Financial Independence


4. Monitor and review your goals and progressions
Annual Review
  •   Net Worth Statement
  •   Debt to Income Ratio


Resources for Personal Finnancial Planning:


Article:  How to Create a Monthly Household Finance Spreadsheet
Sample Financial Net Worth Statement 
Sample Debt to Income Ratio Calculation