Everyone works to earn money, but few plan how much money is needed to achieve their goals. A financial planning must be done taking into consideration all the activities that concern a particular person and looking from different points of view. A financial professional would have no difficulty showing you how to plan from existing contexts - something any consultant might fear doing, although this way of organizing one's life is the best and safest.
Steps
Step 1. Consider any difficulties
When analyzing your wealth or proceeding with financial planning, plan in the context of the most unexpected and turbulent situations.
Step 2. Think about what might happen
If you were to die or if one of the people you care about were to pass away, what would be the consequences you or your loved ones would face?
- What are the situations that would subsequently change?
- Are these changes you want?
- If so, let it happen and you won't need to plan in this context.
Step 3. Ask yourself if you have a backup plan
If you become seriously ill or have an accident (or if these events happen to a person for whom you have responsibility), do you have a backup plan that takes this risk into account?
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In any financial plan you must consider:
- Risk assessment - circumstances under which these risks are to be calculated
- Cost of risk - estimate by which to evaluate the consequences of each risk on a large scale
- Risk management - developing a strategy to manage all possible consequences and transferring the most dangerous risks to a professionally managed risk management company
Do Your Own Financial Planning Step 4 Step 4. Consider the risks and steps to take
After considering all the risks that could be associated with your business, such as the consequences of the death of a partner, the death of those who support the family, the disappearance of a parent who makes money, and so on, let's take a step forward in planning. of asset management.
- How do you prefer to manage the inherited assets or pass them on to children and relatives?
- Do you want to pay 50% inheritance and wealth tax or have a comprehensive plan where you could save several contributions money?
- A retirement plan involves nothing more than considering all the expenses you are already incurring over a month, adding an estimated inflation rate for the next twenty years, when you could be around 55. Therefore, calculate the monthly expenses (adding the medical expenses foreseen for the ailments and any pathologies that arise at the age of 55 and over), multiplying them by 12 x 20, that is to say for 20 years, or when you are 75 years old, which is the average life span.
- After that you will have the sum of what you should have at the age of 55.
Do Your Own Financial Planning Step 5 Step 5. Think of a care plan and a teaching plan
There are also training plans, family health plans, and so on.
Advice
- Seek the advice of a professional who has a financial advisor qualification or similar qualification to help you with your financial planning.
- Do not wait for tomorrow, because tomorrow does not belong to us and it may already be too late.
Warnings
- Don't think that any type of consultant is omniscient, so don't ignore a second opinion. It could be really useful.
- Seek financial advice from someone who has a proven track record and is well informed.
- Before adopting any advice, be sure to make all your goals and current situation clear and clear.
